STO raises oil price

freeze Fri Mar 21, 2008 9:01 pm

State Trading Organization (STO) has raised oil prices effective from yesterday. STO revealed that the recent price revision is mainly due to the global hike in oil prices. The company informs they last revised oil prices on December 1, 2007.

A petrol liter now costs Rf.11.25 and a liter diesel now costs Rf. 11.30. Further a liter of Kerosene now available at Rf. 11.50. The prices of a liter of petrol, diesel and kerosene previously stood at Rf 10.30 for petrol and diesel and Rf 11.30 for kerosene. STO says prices of oil in the world market increased 25% for petrol and diesel since last December and 17% for kerosene.

STO says that considering the increased oil prices at the world market, this raise by the company is comparatively low and that it represents a 9% raise for petrol and diesel. The company also informs that the price of kerosene was raised by 2 %.

STO informs that many believe that global increase in oil price may be due to weakening American economy. STO also said that as a result many of the speculators operating in the financial market invest only in secure items like gold. STO also says devaluation of the dollar is also a contributing factor.

CEO of STO Ahmed Mohamed speaking to Miadhu Daily earlier this month said if adjustments to oil prices were not made soon the company would suffer huge losses. He also warned that oil prices will soon be changed.