August update January 2014 could bring higher European jet fuel prices In recent months there has been a considerable degree of confusion regarding the EU's Generalised Scheme of Preferences (GSP) and the impact it may have on oil prices within the 'Eli. The GSP allows import tariff exemptions on goods from developing countries, thereby encouraging trade with poorer countries. It may come as a surprise that, at present, countries eligible to benefit from the scheme include Russia and most of the Persian Gulf (including Saudi Arabia). However, the World Bank has now reclassified these nations as upper-middle income economies which will mean that, from 1 st January 2014, all standard import tariffs will apply. To compound matters further, Libya, a key supplier of jet fuel into the Med, is considered to be on the verge of a World Bank upgrade, so may soon be subject to the same import tariffs.
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