A record-high increase in fuel prices in Europe

In early October, there was a surge in fuel prices at Polish gasoline stations. According to BM Reflex, the average retail price of diesel fuel was PLN 7.6 per litre. This meant an average increase of 34 cents per litre per week.

Looking at the situation in the wholesale market, one should expect further growth in retail prices for fuel and lubricants. According to BM Reflex, wholesale diesel prices rose on October 07 by PLN 0.60 per litre, reaching therefore a level of approximately PLN 7.70 per litre. Internet portal analysts forecast that the diesel fuel price may reach PLN 7.90-7.99/l.

The price for a litre of diesel fuel in Italy reached EUR 1.86 at self-service gasoline stations and EUR 1.99 at branded gasoline stations, national media reported on October 12.

In France, diesel fuel has gone up in price by 14.5 cents per litre. The price increase has occurred despite economic support measures: the French government gives a discount of 30 cents on the purchase of any fuel, and TotalEnergies also gives an additional discount, which is added to the government one, in the amount of 20 cents per litre.

In Austria, a new tax on CO2 emissions has been introduced, which immediately pushed up fuel prices. The level of the new levy, which came into force on October 1, will increase annually until 2025. Ultimately, after three years, it should be increased from EUR 30 to EUR 55 per tonne of CO2. According to the Austrian Institute for Economic Research (WIFO), a €30 per tonne CO2 levy in 2022 will raise petrol and diesel prices at gasoline stations to 9 cents.

The increase in the price of fuel is primarily the result of higher prices for crude oil and finished products in conjunction with a high US dollar exchange rate. One of the key reasons behind the rise in oil prices is the reaction to the recent decision of the OPEC + countries to cut oil production by 2 million barrels per day.

Source: trans.info