Fuel prices for February to remain unchanged despite tax increase on fuel
The Ministry of Mines and Energy this week announced that fuel prices for February will remain unchanged despite the Ministry of Finance’s move to increase tax on fuel, in efforts to generate additional revenue for the government.
The Ministry of Mines and Energy in a statement said it has, therefore, decided to follow through and increase the Fuel Tax by 15 c/l from 25 c/l to 40 c/l on all the price regulated fuel products. The effective date for this adjustment is 7 February.
However, fuel prices will be reduced by 15 c/l in the Ready Reckoners in order to offset the fuel tax increase and keep the pump prices unchanged.
Meanwhile, in the statement released, the ministry stated that the Organization of the Petroleum Exporting Countries (OPEC) has pumped 32.4 million barrels per day in January 2018, up 100,000 barrels per day from December 2017.
Despite the increase in production, adherence by producers included in the deal to curb supply rose to 138 percent from 137 percent in December 2017, suggesting commitment is not wavering even as crude oil prices hit their highest level since 2014.
In January 2018 the biggest increase in supply came from Nigeria, where some shipments originally planned for export in December 2017 slipped into January 2018. Top exporter Saudi Arabia boosted output by 50,000 barrels per day.
The results of the latest fuel price review indicate that the average Free On Board prices per barrel has increased for ULP 95 and for both Diesel grades.
Barrel prices for refined oil traded at an average of US$ 77.084 for ULP95, US$ 79.693 and US$ 79.916 for Diesel 500ppm and Diesel 50ppm respectively.