No fuel price reduction yet, despite 20% price drop in crude oil

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Mines, Energy and Water Development Minister Christopher Yaluma has ruled out any imminent reduction in fuel pump prices despite the continued declining oil prices on the international market.

The price of Brent crude has fallen by 20% since the summer on concerns of oversupply, as output increases and demand wanes.

Brent crude has fallen to below $87 a barrel, while US light crude was down slightly at about $85 a barrel.

But Mr Yaluma has told QFM News in an interview that the current fuel pump price in the country will remain the same because the crude oil from which it has been refined is from the old stock which was procured before crude oil prices begun falling.
He explains this means that the price of fuel in the country is currently based on the price of the old stock.

Mr. Yaluma says should the price of crude oil remain the same at the time the new crude oil consignments will be procured, it will have an impact on the fuel pump price in country.

QFM NEWS

( Tuesday 14th October 2014 )

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