Diesel and kerosene will both go up by seven cents per litre, and unleaded petrol by three cents, as from today, Enemalta Corporation announced yesterday. Gasoil for heating goes up by nine cents per litre.
Explaining the new higher prices, Enemalta said the revised recommended retail prices reflect the prices it fetched for the latest shipments of imported fuel. It said the February unleaded and diesel consignments were both based on February Platts prices which were higher than the previous delivery pricing basis, as a result of increased tensions and civil unrest in the Middle East and North Africa, which have significantly impacted the price of crude oil.
Libya is the world’s 12th largest exporter of oil and the majority of its output goes to Europe, Enemalta said. Spanish oil firm Repsol, France’s Total and Italy’s ENI partly suspended operations in the North African country earlier last week. The price of crude oil has reached $112 a barrel from $83 back in October 2010, an increase of 34%. Europe imports around 80% of Libya’s oil exports. In reporting the crude price rise of 34%, Enemalta did not say at what price it bought its crude.
Another concern in the markets, it said, is that the trouble could spread in key oil producing countries, drastically affecting supplies. Over and above, oil markets are factoring a risk premium of over $10 into the price for a barrel of crude, as a result of regional tensions.
Premiums were also reflecting concerns over crude supplies to refiners due to a shortage of matching grades, with concerns particularly acute in the Mediterranean. Some traders claim that the tensions in Libya can impact diesel if refiners do not have the crude available. Mediterranean diesel in particular is very strong, possibly because it is closer to the tension, and the Mediterranean does get some crude supply from the region.
Product Previous Price New Price Change
Unleaded €1.310 €1.340 €0.03
Diesel €1.210 €1.280 €0.07
Kerosene €1.210 €1.280 €0.07
Gasoil for heating €0.830 €0.920 €0.09
TFO 200 €598.00 €656.00 €58.00
TFO 450 €584.00 €638.00 €54.00
TFO 900 €559.00 €609.00 €50.00