Monday, April 13, 2009

Fuel prices rise slightly in the wake of international demand

Domestic fuel prices have risen slightly following increased international demand for refined fuels.

Diesel increased the most (about 9 percent) with unleaded gasoline (ULP) and kerosene rising only marginally.

InterOil President Bill Jasper said the April fuel cost structures reflected the volatility of the international marketplace.

“It is driven by perceptions of future demand,” he said.

“Last month both diesel and kerosene eased in price, this month they have increased.

“Presently the overriding perception on international markets is that demand will increase in the months ahead as various government economic stimulus measures around the world begin to take effect.

“Unless supply also increases, higher international demand forces up the price, an economic fact we have seen in evidence during the past eighteen months.

“The price changes we are experiencing here in Papua New Guinea reflect what is going on throughout the globe.

“We are part of the international community and, as such, are not immune from the effects of what is happening overseas.

Mr. Jasper said there were two sets of forces in play.

“On one hand we have an international recession, which on its own would drive prices down,” he said.

“However, we also have a series of political tensions and civil unrest in oil producing countries in Africa and the Middle East.

“This coupled with expectations of increased future demand have forced up prices.

“For example, crude oil prices have edged upwards by about 10% in recent months.”

Crude prices are well below the record high of mid-2008 when they hit around $US150 a barrel.

The volatile nature of the international marketplace is such that making medium or long predictions is virtually impossible.

“Again we find ourselves at the mercy of a complex array of international factors”, Mr Jasper said.

For further information and to arrange media interviews contact:

 

Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: (675) 321 7040

Mobile: (675) 684 5168

Email: susuve.laumaea@interoil.com  

 

 

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