THE ENERGY REGULATION BOARD (ERB) HAS ANNOUNCED AN UPWARD INCREASE IN THE PRICE OF PETROLEUM PRODUCTS BY OVER 800 KWACHA EFFECTIVE MIDNIGHT TONIGHT.
THE INCREASE MEANS PETROL WHICH WAS FETCHING ABOUT 7,639 KWACHA WILL NOW COST 8,647 KWACHA PER LITER AND DIESEL WILL NOW COST 7,958 PER LITER FROM 6,999.
KEROSENE WILL ALSO START COSTING ABOUT 5,641 FROM 5,008 KWACHA PER LITER.
ERB SAYS THE INCREASE IS DUE TO THE RISE IN PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET.
ACCORDING TO A STATEMENT MADE AVAILABLE TO RADIO PHOENIX SIGNED BY ERB EXECUTIVE DIRECTOR BUTLER SITALI, THE REGULATING BODY HAS ALSO EXPLAINED THAT THE INCREASE IS AS A RESULT OF THE SUSTAINED RISE IN PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET FROM SEPTEMBER 2010 TO DATE.
MR SITALI HAS SAYS THE PUMP PRICES OF FUEL WERE LAST ADJUSTED IN SEPTEMBER 2010 WHEN THE UNIFORM PUMP PRICING MECHANISM WAS IMPLEMENTED.
HE SAYS SINCE THEN, PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET HAVE CONTINUED TO RISE AND SURPASSED $100 PER BARREL ON 31ST JANUARY 2011 AMID FEARS THAT THE TENSION IN EGYPT COULD ADVERSELY IMPACT THE SUEZ CANAL ROUTE – AN IMPORTANT SHIPPING ROUTE FOR OIL BETWEEN THE GULF COUNTRIES AND THE MEDITERRANEAN.
HE SAYS THE INCREASE IS ALSO AS A RESULT OF THE INCREASE IN PRICES OF CRUDE OIL AND RISE IN DEMAND FROM CHINA AND THE UNITED STATES OF AMERICA WITH A DECLINE IN US CRUDE INVENTORIES BY ABOUT 19 MILLION BARRELS IN THE FIRST THREE WEEKS OF DECEMBER.THE INCREASE MEANS PETROL WHICH WAS FETCHING ABOUT 7,639 KWACHA WILL NOW COST 8,647 KWACHA PER LITER AND DIESEL WILL NOW COST 7,958 PER LITER FROM 6,999.
KEROSENE WILL ALSO START COSTING ABOUT 5,641 FROM 5,008 KWACHA PER LITER.
ERB SAYS THE INCREASE IS DUE TO THE RISE IN PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET.
ACCORDING TO A STATEMENT MADE AVAILABLE TO RADIO PHOENIX SIGNED BY ERB EXECUTIVE DIRECTOR BUTLER SITALI, THE REGULATING BODY HAS ALSO EXPLAINED THAT THE INCREASE IS AS A RESULT OF THE SUSTAINED RISE IN PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET FROM SEPTEMBER 2010 TO DATE.
MR SITALI HAS SAYS THE PUMP PRICES OF FUEL WERE LAST ADJUSTED IN SEPTEMBER 2010 WHEN THE UNIFORM PUMP PRICING MECHANISM WAS IMPLEMENTED.
HE SAYS SINCE THEN, PRICES OF CRUDE OIL ON THE INTERNATIONAL MARKET HAVE CONTINUED TO RISE AND SURPASSED $100 PER BARREL ON 31ST JANUARY 2011 AMID FEARS THAT THE TENSION IN EGYPT COULD ADVERSELY IMPACT THE SUEZ CANAL ROUTE – AN IMPORTANT SHIPPING ROUTE FOR OIL BETWEEN THE GULF COUNTRIES AND THE MEDITERRANEAN.
MR SITALI HAS FURTHER POINTED OUT THAT SEVERE COLD WEATHER IN EUROPE AND PARTS OF THE USA AND THE RECENT EVENTS IN THE PROXIMITY OF THE SUEZ CANAL HAVE EXACERBATED THE SITUATION AS WELL.
THE EXECUTIVE DIRECTOR HAS STATED THAT THE INCREASE IN PUMP PRICES HAS ALSO BEEN NECESSITATED BY THE DEPRECIATION OF THE KWACHA AGAINST THE US DOLLAR FROM THE TIME WHOLESALE PRICES WERE LAST ADJUSTED.
HE SAYS AT THE LAST PRICE REVIEW IN MAY 2010, THE PETROLEUM FEEDSTOCK CARGO HAD BEEN PROCURED AT A COST OF $68.6 MILLION AND THE LATEST CARGO WAS PROCURED IN DECEMBER 2010 AT A COST OF $81MILLION ADDING THAT FROM THE REVIEW THE AVERAGE INCREASE IS NECESSARY TO MEET THE COST.
############
No comments:
Post a Comment