Managing Director of STO, Ahmed Shaheer have said that STO brings little changes to the fuel price based on the prices of the world oil markets.
Speaking to the press at the head office of STO today, Shaheer said that since oil is a basic commodity, they do not increase the price at the same rate at it increases in the world market. He said that STO shares the burden of a large percentage even when they increase the price.
“STO has shareholders. Hence, we need to include a margin of profit. We cover the major part of the costs involved” said Shaheer.
Shaheer said that this year’s profit was seen as low because, STO spends a significant amount to subsidize the oil.
He said that the price of oil in world markets increase due to various reasons. “One reason is the increased in demand for oil in Europe and USA. In addition they have controlled productions. Additional one hundred thousand barrels are needed every day” said Shaheer.
In addition he said that the recent hurricanes in USA also hiked oil prices. Furthermore he said that the instability in the middle east also contributes to the price hike. He said that the countries that stocked fuel when oil was cheap, are running out of their supplies and this is also increasing the price. He said that many countries are still buying in large quantities because the price is increasing. He said that all these are reasons why oil prices are increasing in the world markets.
STO brings little changes to the fuel price based on the prices of the world oil market : Shaheer
