Parliament debates increase in prices of petroleum products

Industry and Commerce Minister Ashit Gungah told Parliament Tuesday that the world has witnessed a constant increase in the price of petroleum products since November 2016 when the Organisation of Petroleum Exporting Countries (OPEC) agreed to reduce the production and supply of crude oil.

He said that, following the decision of the USA to withdraw from the nuclear agreement with Iran, the price of petroleum products on the world market flared up by 3 USD per barrel in one day to reach on Thursday 17 May 2018 its highest level since 2014.

Ashit Gungah emphasised that there was a constant rise in the price of petroleum products on the world market since end of 2016.

“All these factors have impacted heavily on the retail prices of Mogas and Gas Oil locally. Taking into consideration the three and half year peak in the world prices of petroleum products, the Petroleum Prices Committee PC had no alternative but to recommend an increase in the price of Mogas and Gas Oil respectively by 9.94% and 9.97%.

“As a Small Island State we are vulnerable and subjected to fluctuations in the world market price of petroleum products”, he said.

 

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