Government explains fuel price fluctuations
Mako Jerera
Energy and Power Development Minister Soda Zhemu yesterday told parliament that the ongoing tension between Russian and Ukraine are affecting the pricing of fuel.
Responding to questions from the House of Assembly over the rapid fuel price increases, Minister Zhemu explained the variables.
Between four days petrol prices rose with 25 cents, from US$1,44 per litre to US$1,52 and then US$1,67.
“Primarily, we were affected by the war between Russia and Ukraine, which is the second biggest petroleum producer in the world. The mechanism by which we come up with petroleum products is through predetermined exposures. What has just moved is the FOB price,” he said.
At a later press conference yesterday, Minister Zhemu said it is unclear when the situation will normalize.
He said there could be weekly reviews of fuel prices to ensure that there are no shortages.
“We are all affected, but if we can have the (fuel) those that can afford can always continue to be (driving), but this is a time to make critical decisions, not to be travelling unnecessarily, and we can also maybe use Zupco buses that the government has provided,” Zhemu said.
“Let’s park our vehicles for now, that is an encouragement, yes, because the government has already gone ahead of this situation that we are into currently by providing these buses. Let us make use of the Zupco buses to and from our work stations in the interim while we watch what is happening on the international arena.”
Russia contributes about 12 percent to global oil supplies and it has not been selling the commodity in response to the barrage of sanctions slapped against it.
“The objective is to ensure that oil companies remain viable, which would in turn ensure that the local market continues to receive adequate fuel supply,” Zhemu said.
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