It had based its 2020 budget estimates on an oil price of $57 per barrel. However, we may not benefit from this situation because of the limited storage capacity of only 645 million litres. We, therefore, do not have the infrastructural capacity for a strategic oil reserve, with the net effect being that the benefit of low oil prices may not be felt at the pump by the consumer. In the current oil marketing structure in the country, all oil Imports are done by the Oil Marketing Companies. This would enable it to take advantage of the international oil glut and rock bottom prices and pass the same to the consumer through low prices at the pump.

Source: The Star May 15, 2020 08:15 UTC