No fuel price respite despite over-recoveries
There is no joy for cash-strapped local motorists after the Ministry of Mines and Energy announced this week that fuel prices will remain unchanged in January despite the National Energy Fund account recording a surplus in December.
The over-recoveries in the energy fund has been attributed to the relatively low prices experienced in December due to the slow global growth which in turn has affected aggregate demand for oil around the world.
Although no oil shocks were experienced during the festive period, the Ministry expects oil prices to be volatile in the coming months resulting in large swings in crude prices, a decision cited as the reason for keeping fuel prices unchanged.
In a statement, the Ministry of Mines and Energy added that it will keep fuel prices at current levels despite the over-recoveries to increase its prospects of subsidising fuel during hard times.