Fuel prices remain unchanged
03 February 2020 | Energy
According to the ministry, international inventories for liquid fuels remained mostly unchanged in 2019. However, inventories are expected to grow by 300 000 barrels per day in 2020 and then decline by 200 000 barrels per day in 2021.
“The fixed level of fuel inventories in 2019 explains to a large extent why fuel prices remained stable and unchanging over most parts of the year, despite the fact that the moderate under-recoveries that were recorded locally on set prices were absorbed by the National Energy Fund on behalf of local fuel consumers, costing tens of millions of dollars per month,” according to a statement.
The ministry said that on 1 January 2020, the International Maritime Organisation (IMO) enacted a convention for the prevention of pollution from ships (MARPOL convention), which lowers the maximum sulphur content of marine fuel oil used in ocean-faring vessels from 3.5% of weight to 0.5%. This regulation means that freight rates or the transportation cost of bulk fuel at sea, has increased which is reflected in the latest Basic Fuel Price calculations conducted by the ministry.
Refined oil traded at an average of U$72 and U$77 per barrel of petrol and diesel respectively during January 2020, in comparison to a final average of U$72 and U$78 per barrel of petrol and diesel respectively in December 2019, further reflecting price stability.
The ministry also announced that it has reviewed the dealer margin in line with the general inflation rate for 2019, deciding to increase the margin by 4c/l from 106c/l to 110c/l on all price regulated fuel products, effective as from 5 February 2020.