Liquid Fuels: Increases – shocks from 10% to 27% in unleaded diesel in Europe [πίνακας] – Financial Postman

The cost of liquid fuels is “burning” across Europe – and in Greece – like the war in Ukraine, the rising dollar and OPEC + . position Further closure of the channels has led to unprecedented increases in overall prices in lead freeAnd the diesel And the heating. Compared to last year in particular at the same time, the largest increases at the European level were recorded in diesel and heating oil, followed by unleaded oil.

It is significant that due to the special conditions in the market, prices for this fuel in our country for the first time even exceeded the prices for unleaded 95 octane.

Read more: 7 reasons behind the rise in diesel prices

However, this phenomenon, with diesel being more expensive than gasoline, is now also observed in most European countries.

Based on the latest pan-European aggregate European Commission data on October 10, the average price in the EU and Eurozone for diesel has increased by about 27% compared to the same period last year (October 25, 2021) according to data provided today by is financial postman. The corresponding increase for unleaded 95 octane is about 10%. However, these increases are much higher in Greece, where in diesel it reaches 36% year-on-year and exceeds 14% in unleaded diesel. The “map” of OT prices for which prices are formed is typical of the prevailing situation.

Assembly for heating oil

Pan-European average heating oil prices also show a jump. There, as reported by market players, fluctuations are continuing, as is the case in general with diesel, as a result of which it is difficult to assess the situation.

Read more: OPEC: Expectations of demand for a rating downgrade – signs of new production cuts

But what is important in the end is what the consumer pays for heating, if he uses this fuel. Thus, while heating oil prices in Greece are expected to open at levels of 1.44 to 1.49 euros per liter depending on local market factors, pan-European average prices were at 1.57 euros per liter according to European Commission data.

In Greece at this time last year, prices were about 1.17 euros, while in the European Union they were much lower, at 0.97 euros per liter. This is an increase of 24% in our country and about 63% in the European Union. It now remains to be seen whether this “magic picture” in Europe will be temporary, as Platts diesel prices in the Mediterranean constantly follow the elevator path.

Platts prices go up

As an indicator, last year’s Platts diesel price was on September 1st at $625.7 per ton, and on June 1, 2022, the price more than doubled to $1324.7 per ton. On October 6, it saw a slight decrease to $1161.7.

It is also noted that after the huge problems with the delivery of natural gas from Russia to Europe, many industries in the European Union abandoned this fuel and turned to oil to cover their needs, which led to an increase in demand.

At the same time, the imposition of sanctions on Russia, which culminated in the latest sanctions on October 5 on oil exports, has had the effect of restricting supplies from a country that is the second largest exporter of black gold in the world.

Read more: OPEC’s decision will harm the global economy.

Wounded by OPEC +

In early October, OPEC+ also decided to cut global daily production by 2 million barrels, or about 10%, despite opposition from the United States and other countries. The production cut could lead to a rebound in the price of black gold, which has fallen to $90 a barrel from $120, which had risen three months ago.

According to Bloomberg calculations using data on global oil production in September, a cut of 2 million barrels per day means that at least eight oil-producing countries will need to reduce their production, and the reduction will in fact be in the order of 880 thousand barrels per day at this point.