Higher prices for fuel

Government has announced higher prices for unleaded and leaded petrol, diesel and kerosene due to shifts in the international market over the past three months.

The government gave the new prices in a statement yesterday. Unleaded petrol has gone up to 36.7 cents per litre, which means a rise of 1.7 cents per litre; diesel is now 23 cents per litre, a rise of 1.5 cents; leaded petrol has risen by 1.7 cents to 39.7 cents; and kerosene by 0.3 cents to 12.2 cents per litre.

The first adjustments to the fuel prices had taken place in April, following a budget announcement that prices would be established according to the international market.

Unleaded petrol had been reduced to 35 cents per litre from 36 cents and leaded petrol to 38 cents from 39 cents. The price of diesel and kerosene had remained unchanged.

The government said the new price of diesel coincided with the introduction of a new type of diesel fuel, EN590, which has significantly lower levels of sulphur in conformity with international standards.

"The introduction of this type of diesel should lead to less air pollution and at the same time drivers of diesel operated vehicles should notice a drop in consumption when compared to the previous type of diesel," the statement said.

The formula being applied, it said, reflected the changes in the market that had taken place between April 1 and June 30, a period when the average price of oil had been higher.

The formula was devised so that Enemalta would cover its current fuel import costs and operational costs related to its importation.

Last November the finance minister had explained in his budget speech that if the formula had been applied with immediate effect, the price of unleaded petrol would have been brought down by almost five cents per litre, leaded petrol would have gone down by almost two cents per litre but the price of diesel would have had to increase by over nine cents.

But because of the dependence of industry on diesel, the government had decided not to effect the increase in one go.

In the last budget, the price for unleaded fuel was reduced by 1c5, the price of leaded petrol went up by 1c5 while the price of diesel rose by 1c4 per litre.