January 18, 2015

Fuel prices may drop

Fuel prices in the country are expected to go down soon says state Minister for Energy State Minister Simon D’ Ujang

fuel
D Ujang in an interview says the fuel prices may fall as government makes the next round of fuel importation.

He says the prices had remained high because the previous fuel ordered for the county had been purchased at a slightly higher price than it has been in the last months.

There has been concern among motorists that the pump fuel prices in the country have remained stagnant or relatively higher despite the fall in global fuel prices.

D Ujang says apart from the  effect of transportation costs and the fuel purchased before the drop in global crude oil prices, the  weakening shilling against the dollar has had an effect on why the fuel prices in the country has remained high.

A barrel of crude oil on the global market was rated at $47 (Ush126,900) mid last week down from $115 (Ush310,500) as of June 2014. It later went up though to $52 per barrel by the close of the week.

By late 2014, world oil supply was on track to rise much higher than actual demand, as the report from the International Energy Agency shows. And, in September, prices started falling sharply.

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