Diesel prices fell, but gasoline rose again. What’s new?

Already last week, the price of gasoline had increased more than that of diesel. Now, the trend reversal in fuel prices since the start of the invasion of Ukraine is confirmed. The “problem” that started with diesel now ends up in gasoline

the price of single diesel down 4.37 cents this Monday, compared to the price of the same day of the previous week. The decline was even greater in the special diesel, which was 4.8 cents cheaper.

But the price of simple gasoline 95 increased by 3.7 cents per liter from Monday to Monday. already yy 95 Special Gasoline and 98 Gasoline increased by 3.9 cents per litre. And the 98 special gasoline increased by 3.2 cents.

In the same period, in the week of May 9-16, the average price of oil fell by 2% compared to the average price of the previous week (taking into account the daily closing prices of the Brent index). On Monday, the price rose again, now standing at around US$114 a barrel.

Here are the average prices in mainland Portugal, this Monday and the previous Monday:

The data comes from Directorate General for Energy and Geology (DGEG), which publishes daily the average prices practiced the day before in nearly three thousand service stations in mainland Portugal. Data is actually paid for by consumers, including discounts (such as loyalty cards), not those displayed at gas stations.

Already last week, the The price of gasoline has increased more than that of diesel. This week’s data thus confirms a reversal of the trend since the start of the Russian invasion of Ukraine: after the pressure on diesel, it is now the turn of gasoline.

Why is gasoline higher now?

Questioned by CNN Portugal, the secretary general of the Portuguese Association of Petroleum Companies (Apetro), António Comprido, assumes that this reversal in the trend of fuel prices “is a consequence of what is happening on the international markets”. In other words, international prices for gasoline as a refined product are rising more now than prices for refined diesel.

The question of demand in the different phases of the year could also justify this investment, adds the manager, explaining that in winter there is a greater demand for diesel, due to problems related to the heating of houses, while that in summer there is a greater demand for gasoline, linked to tourist activities.

Even so, António Comprido admits that he still does not have all the information to justify why gasoline is rising more than diesel, especially because Europe, especially because of the war in Ukraine, “is having more difficulty to stock up on diesel rather than petrol”.

On Tuesday, President Vladimir Putin stressed that Western sanctions and a possible Russian oil embargo (a measure currently being discussed among the 27 EU member states as part of a sixth sanctions package against Moscow) have led to an “increase in world oil prices”.

Since the start of Russia’s invasion of Ukraine, diesel has started to increase much more than gasoline, but the increases are now aligned in percentage terms: around 8%.

It should be noted that these prices would be more than ten cents more expensive had it not been for the government tax reduction.

CNN Portugal regularly assesses the evolution of fuel prices in Portugal, whose prices soared after the invasion of Ukraine, mainly due to the sanctions imposed on Russia, a major producer of oil and refined products.

Leave a Comment