Petrol prices at all time high. And rising
The price of petrol has again risen sharply this week, both in Europe and the US. For the first time petrol 95 (E10) is more than 2 euros per liter in many European countries. For a full tank of 50 liters, motorists will have to pay almost 5 euros more. Experts do not expect the price to fall quickly.
“With diesel also climbing to its third record high in four days, drivers are feeling never-before-seen pain at the pumps”, a spokesman of the British automobile club RAC said.
The war in Ukraine is driving the prices up further. Europe increasingly wants to move away from Russian oil and is looking at other sources. But the Organization of Petroleum Exporting Countries (OPEC) has no intention of opening the oil tap any further. “They can’t or they won’t increase their production. In fact, they remain below the pre-set production,” says Johan Mattart of Brafco, the Belgium federation of fuel traders.
Mohammad Barkindo, OPEC secretary general, said earlier that it is impossible to replace Russia’s exports of more than 7 million barrels a day.
Fuel expert Omer Coekaerts from Belgium sees other reasons for the rising price of petrol besides the war: summer. “Actually, the petrol price is still too low compared to diesel. Every year around this time we see a price adjustment due to the composition of the fuels. For example, gasoline gets less volatiles added in the summer and the composition becomes more expensive. The reverse happens with diesel where substances are added in the winter to prevent the diesel from freezing.”
If it’s any consolation: the price could have been much higher. China remains under the spell of corona. With the Chinese economy slowing down, their demand for fuel is reduced.
photo: Erik Mclean, Unsplash