Originally published March 31, 2006 in The Herald
Terrorism and political instability continue to rock world oil markets, resulting in an increase in the prices of refined petroleum products over the month of March. Residents of Cameroon can expect those price increases to be reflected at the pump, as the price of petrol is predicted to increase by an unspecified amount by midnight today.
The fund for the stabilisation of fuel prices released its analysis of the past month's world petroleum market yesterday. Despite a slight decrease in the price of unrefined crude oil, from $61.44 US a barrel to $60.85 US, the price of refined products such as super petrol and diesel fuels increased. Super increased 3% from $544 US per metric ton to $570.86 US, while diesel fuel increased 2% from $548.95 US per metric ton to $560.36 US. An exception was the price of kerosene, which decreased slightly from $617.98 US per metric ton to $611.75 US.
The increase in the price of refined petrol is expected to have the most noticeable effect on Cameroon. Super currently sells for 563 FCFA per litre and experts expect it to hit 575, while gazole sells for 524 FCFA and petrol sells for 356 FCFA. Prices at the pump are expected to increase in April as the government attempts to keep up with world markets.
The global price increases are a result of increases in the demand for refined petroleum outpacing increases in the supply. Several new factors have recently affected the oil market. A terrorist attack in Saudia Arabia decreased the available supply of remined petrol.
In addition, uncertainty about Iran's possible nuclear weapons programme could jeapordise supplies from the country. Iran holds 10% of the world's proven oil reserves. And in the region, militant attacks in Nigeria have reduced petroleum output from that country by 650,000 barrels a day.
Without substantial new oil supplies, prices will continue to rise as Europe, Japan, the United States, and others continue to consume oil at a high rate, and as demand from growing countries like India and China continues to increase. Experts estimate that world oil supplies may reach their peak within 10 or 20 years.
