Fuel Prices Go High

Oct 2 , 2023

Officials at the Ministry of Trade & Regional Integration have made an average three percent increase on the price of fuel, effective September 29, 2023. After only a month since the last adjustments were made, the statement from the Ministry indicates the price twig was necessary following an international oil market change. Following the adjustment, a litre of Benzine is 77.65 Br, up by 2.8 Br; a litte of Diesel goes for 79.75 Br,  while Kerosine is sold at 79.75 Br which increased by 3.41 Br. Jet fuel is sold for 70.83 Br a litre. The Russia and Ukraine war upended oil markets, creating a global energy crisis amid the uneven economic recovery from the pandemic. According to an International Energy Agency report, Russia’s membership in the Organization for the Petroleum Exporting Countries(OPEC+) bloc has complicated efforts by the international community to navigate the crisis and address the major inflationary impacts of higher oil prices in developing countries. The report also stated that the Saudi-Russian alliance is proving a formidable challenge for oil markets with volatility at multi-year lows, the decision by the countries to extend output cuts of a combined 1.3 million barrels per day through year-end triggered a price spike.