Increase in security stock fees pushes up unleaded by one cent

Enemalta has announced an increase of 1 euro-cent in the price of unleaded and a two euro-cent increase in heating gasoil, while diesel and kerosene prices have remained unchanged.

The above 'Maximum Retail Price' reflects the prices fetched by Enemalta for the latest shipments of imported fuel.

Enemalta said the latest diesel consignment was based on February Platts prices which on average rose by 3.79% over January prices. In addition to the international product prices, Enemalta also experienced an increase in costs related to its security stocks obligations.

While on average the international petrol and diesel prices edged higher during the month of February, the euro currency somewhat strengthened against the US dollar, explaining stability brought about in February prices with respect to diesel.

With respect to unleaded, a consignment was recorded end of January and as a result was based on January Platts prices. This is the second unleaded consignment which was recorded for the month of January and was priced using the January Platts average.

The €0.01 increase in the petrol price for the month of March is primarily brought about by the increase in the security stock fees and product density adjustment factors.

The increase in the price of light heating oil was mainly brought about by the new consignment which was delivered during the month of February and reflects the average gasoil price for the month of February together with the increase in the security stocks fess. The previous heating oil delivery took place in August 2012 when prices where 4% lower.

During the month of February, ICE Brent crude prices rose by 3.6% over January prices, on track for its steepest monthly drop since October.

Brent hit nine-month highs above $119 in early February but has traded below that level since on concerns the global economic recovery may take longer than thought. Continuing tensions over Iran's nuclear program helped keep a floor under prices.

"According to market experts, in Europe there aren't any clear signs of a sustained recovery and this does not seem to be changing anytime soon," Enemalta said in a statement.

During the month of February 2013, the euro currency gained some value against the US dollar to an average level of $1.3371 compared to the January average rate of $1.3288.  During the last week of February the euro held its ground against the dollar after a relatively smooth auction of Italian government bonds helped temper concerns about the country's political deadlock. The downward risks are seen as being dominant in the short term due to the political situation on both sides of the Atlantic.