Gasoline and diesel: so prices will rise even higher

Bad news for drivers: After a summer with high fuel prices, an even saltier autumn awaits us. The price of Brent, a type of oil traded on the London stock exchange, exceeded the $90 per barrel threshold, reaching its highest level since last November. North Sea crude is posting these sharp gains after Russia and Saudi Arabia decided to cut oil production by the end of the year. So what do Brent, Russia and Saudi Arabia have to do with oil prices? Let’s go in order.

Increases in petrol and diesel

Gasoline and diesel are obtained from the distillation of petroleum, so if the price of crude oil increases, the price of the fuel also increases. Oil prices soared to nine-month highs after Russia and Saudi Arabia confirmed their intention to extend production cuts and limit supply until the end of the year instead of a month as analysts had predicted.

Since these two countries are among the world’s largest oil producers after the USA, their unilateral decisions also affected crude oil prices. OPEC+, the Organization of the Petroleum Exporting Countries, which consists of 24 countries and negotiates all issues related to oil production, prices and concessions with oil companies, will likely extend production cuts until 2024 to support prices. This is having an upside effect on prices despite rising global oil demand. While the signs of lowering excise taxes in Italy and the average price of gasoline at gas stations are discussed, drivers will find themselves facing a new rise in prices, not to mention insurance (we talked about it here). Many are hoping for the petrol bonus, but all of that needs to be decided.

Diesel +12.4% and gasoline +8.1% in three months

According to Assoutenti’s report, last week gasoline reached 1,954 euros per liter and diesel 1,855 euros; According to Assoutenti’s report, there was an increase of +8.1 percent for green and even +12.4 percent for diesel in just three months. Compared to May, a full tank of petrol now costs drivers 7.4 euros more (+177.6 euros per family per year assuming two full tanks per month), while a full tank of diesel costs more than 10.3 euros (+ per year) 247.2 euros) per family).

“The distress reported by us regarding the Italians’ return from summer vacation is fully confirmed by the data provided by Mise today,” says President Furio Truzzi. The possibility of giving gasoline bonuses to less affluent households, a measure will be examined by the Executive, does not seem to solve the problem: In fact, fuel price lists need to be lowered for everyone, especially freight transport, given the negative impact of pump spikes on oil prices. Transported goods, especially food, which are already suffering from the consequences of expensive oil. Therefore, the government should cut excise taxes immediately to ease material costs and slow growth in retail price lists.”

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Source: Today IT