Nauru fuel prices – Ukraine invasion
Department of Finance
MEDIA RELEASE
For Immediate Release
Wednesday, 23 March, 2022
Nauru fuel prices - Ukraine
invasion
On 24 February 2022 Russia began a
full-scale invasion of Ukraine. Russia is the world's second
largest exporter of petroleum. The loss of this supply
continues to put severe upwards pressure on world fuel prices.
The International Energy Agency is
coordinating additional supply through stock releases and working
with other oil producers to increase their production. In the short
term or until there is an end to the conflict, prices may continue
to rise. However, despite the conflict, stocks of petroleum remain
adequate.
Countries across the world
(including the US and Australia) have condemned Russia's actions
and put in place a range of sanctions on Russia. These
include banking restrictions which have largely halted the flow of
Russian oil exports.
Following Russia's invasion of the
Ukraine, oil prices have jumped USD 30/barrel (increase is
equivalent to around Australian 26 cents per litre). These price
rises are occurring across the world as international petroleum
markets are connected by the movement of petroleum by sea.
Prices in the Asia Pacific region,
where Nauru's petroleum supply comes from, may rise by the same
level. The flow on to Nauru prices will occur over the next 4
to 5 months as the existing stocks are replaced by the higher
priced stock.
The initial changes will come into
effect for Nauru in April after discharge of the next
shipment. Nauru adjusts fuel prices by a proven formula
after each shipment to reflect the market costs. These Price
Control Orders are published every six weeks.
Nauru, like the rest of the Pacific
and world, will see volatility in fuel prices until the Ukraine
issue is resolved, sanctions on Russia lifted or alternate oil
supplies eventually increase to meet demand.
Your government will continue to
closely monitor the situation and offer support to those SOE's
involved in supply of your essential services during this crisis
along with all efforts to ensure no disruptions of
supply.
We ask your support during this
period by using your vehicles and equipment sparingly and planning
your best use.