Oil price drops by 20% in Afghanistan

Oil price has declined by 40% around the world over the past 5 years, which has resulted in a 20% decline in oil price in Afghanistan.

Afghan Ministry of Commerce and Industries (MoCI) spokesperson, Musafir Quqandi, said the Ministry would decide on a new price for oil in consultation with Oil and Gas Enterprise and fuel traders.

Currently, a liter of petrol is sold at 52AFN and a liter of diesel costs 50AFN in Afghan markets.

The price for a barrel of oil hit USD 62.94 during the outgoing week compared with USD 115 in June of this year.

Meanwhile, a number of Kabul residents have complained that the worldwide oil price hike has an immediate positive effect on oil prices in Afghanistan; however, when the price is reduced, the impact is minimal in Afghanistan.

The price for a liter of petrol was 58-61 AFN previously, and some residents claim that gas stations are still selling petrol at these prices.

The northern parts of Afghanistan are endowed with oil and gas reserves. Experts believe that Afghanistan could become self-reliant in terms of fuel, if investment takes place in the country’s oil and gas reserves.