Fuel prices rise sharply on north Africa worries
The price of diesel will go up by 7c per litre from today while that of unleaded petrol will increase by 3c due to the turmoil in north Africa, Enemalta Corporation announced yesterday. Meanwhile, kerosene has also become 7c more expensive and gasoil...
The price of diesel will go up by 7c per litre from today while that of unleaded petrol will increase by 3c due to the turmoil in north Africa, Enemalta Corporation announced yesterday.
Meanwhile, kerosene has also become 7c more expensive and gasoil for heating has risen by 9c in price.
The corporation said the prices reflected those paid by Enemalta for the latest shipments of imported fuel.
“The February unleaded and diesel consignments were both based on February Platts prices which were higher than the previous delivery pricing basis, as a result of increased tensions and civil unrest in the Middle East and north Africa which have significantly impacted the price of crude oil,” Enemalta said.
It also pointed out that Libya was the world’s 12th largest exporter of oil and most of its output went to Europe.
The price of crude oil has reached $112 a barrel from $83 back in October, an increase of 34 per cent. Europe imports around 80 per cent of Libya’s oil exports.
“Another concern in the markets is that the trouble could spread in key oil producing countries, drastically affecting supplies. Over and above, oil markets are factoring a risk premium of over $10 into the price for a barrel of crude, as a result of regional tensions,” Enemalta said.
Premiums were also reflecting concerns over crude supplies to refiners due to a shortage of matching grades, with concerns particularly acute in the Mediterranean, it added.