Steep increase in fuel prices announced

Fuel prices will rise as from tomorrow, Enemalta has announced. The new prices are the following:

The corporation said the prices reflected the prices fetched by Enemalta for the latest shipments of imported fuel.

"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 have significantly impacted the price of crude oil."

It also pointed out that Libya is the world's 12th-largest exporter of oil and the majority of its output goes to Europe. Spanish oil firm Repsol, France’s Total and Italy's ENI partly suspended operations in the North African country earlier this 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 percent of Libya's oil exports.

"Another concern in the markets 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," Enemalta said.

"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 this region."