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Fuel prices 'to rise on petrol consumption'

Tehran, April 11, 2010

The oil market could get a boost from rising petrol consumption, which is pushing up the international price of the fuel, Iran's Opec governor has said.

'Market information indicates the price of petrol in international markets is on the way up. The growth in the consumption of petrol in the first half of the year is the most important reason for the increase,'  Mohammad Ali Khatibi was quoted as saying in a report in our sister newspaper Gulf Daily News.

If petrol prices rise more than expected in the first six months of 2010, it could serve as an impetus for higher oil prices, Ali Khatibi as saying.

Iran, the world's fifth-largest oil exporter, is traditionally a price hawk within the Opec.

As it lacks sufficient refining capacity, it is also a big petrol importer.

On Friday, European petrol prices fell below $800 a tonne following sharp falls in US RBOB petrol futures. Doubts about the strength of demand in the US have surfaced, with imports falling and refineries ramping up activity last week.




Tags: Oil | Price Rise | petrol | fuel | consumption |

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