Wednesday, December 15, 2010

Fuel prices rise 3 times in 3 months

The Ministry of Trade on Friday announced newly revised tariffs of various petroleum products that will take effect as of December 10, 2010 and that will stay until January 2011. The ministry adjusted the price for ethanol-blended benzene to be sold at 15.55 birr from the last month price of 14.87. The ministry had increased the price of fuel and fuel products by 10 percent in October. Economists argue that the recent high magnitude devaluation added with this increment of fuel prices is heavily hammering low and middle class society. Moreover, the recent increment will be in addition to the ever increasing inflation that really widens the gap between the rich and the poor, they say, noting that any kind of consumer products and other merchandize prices are already increasing following the announcement. People living in urban areas, classified as a consumer society, will be hugely affected as prices go up. The Ministry announced that the price increment is in line with the recent devaluation of the birr and global oil price increase. Both of these factors have forced it to adjust the price of oil and oil products. According to the statement from the Ministry, white naphtha will now be sold at 13.24 birr and kerosene will be sold at 11.75 birr per liter. Moreover, light black naphtha will be 12.13 birr, heavy black naphtha 11.76 birr and super benzene for aircrafts is adjusted to 15.15 birr per liter Globally a barrel of oil’s price is currently fluctuating around 85 dollars.. Source (Capital)


Post a Comment