Shell explains fuel prices
THE skyrocketing fuel prices are due to emerging markets, Shell Uganda has explained. “The increasing pump prices are as a result of emerging markets in India and China. This is a simple demand and supply mechanism,†said Ivan Kyayonka, the managing director.
By James Odomel
THE skyrocketing fuel prices are due to emerging markets, Shell Uganda has explained. “The increasing pump prices are as a result of emerging markets in India and China. This is a simple demand and supply mechanism,†said Ivan Kyayonka, the managing director.
Kyayonka was reacting to a mail being circulated by anonymous people, urging motorists not to fuel from Shell filling stations.
“There is a mail being circulated saying the rise is attributed mainly to a sharp jump in world demand and profiteering petroleum companies. The fact still remains we cannot influence the prices,†Kyayonka said.
“Early this year, there was a fuel crisis in the whole of East African region. The ship that was carrying fuel supplies broke down but finally it docked in Mombasa after repair.â€
Pump prices have risen to as high as sh2,690 for a litre of petrol and sh2,650 for diesel from about sh2,350 a litre at the end of last year.
Kyayonka said as a result of the unprecedented Asian demand, there had been a dramatic rise in world oil prices.
A barrel of oil touched a record high of $140 on Monday.
World oil prices have since early this year risen by more than 25%.
However, oil-producing nations are unlikely to increase production.
The increasing world prices are also being fuelled by the growing political unrest in the Middle East, the source of most of the world’s oil, international analysts observed.
At the beginning of the year, fuel prices rocketed to as much as sh10,000 a litre, following disruptions to supplies caused by the post-election chaos in Kenya.
, but prices promptly normalised after the trucks resumed ferrying fuel into Uganda.
THE skyrocketing fuel prices are due to emerging markets, Shell Uganda has explained. “The increasing pump prices are as a result of emerging markets in India and China. This is a simple demand and supply mechanism,†said Ivan Kyayonka, the managing director.
Kyayonka was reacting to a mail being circulated by anonymous people, urging motorists not to fuel from Shell filling stations.
“There is a mail being circulated saying the rise is attributed mainly to a sharp jump in world demand and profiteering petroleum companies. The fact still remains we cannot influence the prices,†Kyayonka said.
“Early this year, there was a fuel crisis in the whole of East African region. The ship that was carrying fuel supplies broke down but finally it docked in Mombasa after repair.â€
Pump prices have risen to as high as sh2,690 for a litre of petrol and sh2,650 for diesel from about sh2,350 a litre at the end of last year.
Kyayonka said as a result of the unprecedented Asian demand, there had been a dramatic rise in world oil prices.
A barrel of oil touched a record high of $140 on Monday.
World oil prices have since early this year risen by more than 25%.
However, oil-producing nations are unlikely to increase production.
The increasing world prices are also being fuelled by the growing political unrest in the Middle East, the source of most of the world’s oil, international analysts observed.
At the beginning of the year, fuel prices rocketed to as much as sh10,000 a litre, following disruptions to supplies caused by the post-election chaos in Kenya.
, but prices promptly normalised after the trucks resumed ferrying fuel into Uganda.