Their price is rising because of oil and an unexpected blow from the Saudi-Russian alliance, which decided to cut production until the end of 2024.
Expensive oil, stopped fuel exports from Russia to Europe and difficulties in the production of some of the refineries in North Africa. These three factors, gathered at the moment, create the perfect storm for a rapid increase in fuel prices, writes “24 Chasa”.
And it started already in the summer, to accelerate steeply in September – in this month alone, prices have risen by 10 cents. Together with the summer accumulation, fuels are now more expensive by at least 30 cents compared to the spring.
And it is unlikely to be the last rise. Traders and manufacturers predict that gasoline and diesel will reach BGN 3 by the end of next month at the latest. For comparison – now their average price is BGN 2.87-2.89, but by the end of this week they will probably go over BGN 2.90.
The difference in prices in individual cities is explained by logistics. In the smaller towns that are far from the oil bases, there are additional costs for transportation by tankers, which also makes the fuel of the column more expensive.
There is also an additional factor in our country that can play a role in the prices of gasoline and diesel. The Parliament has stepped up to end the derogation that allows us to use Russian oil ahead of schedule. And because of its lower price, the production of products in Bulgaria comes out cheaper – the production price of gasoline is 78 eurocents, while in Romania and Greece it is 89-90.
The situation is similar with diesel. The suspension of Russian oil will certainly have an impact on the prices at gas stations.
The diesel also has specifics, which are visible not only in Bulgaria, but in the entire European market. In the spring of this year, for example, on each barrel of oil, the markup during processing was nearly 10 dollars. With the approach of the heating season and the increased demand for fuels, it rose to 40 dollars.
And overall, fuel prices are pushed up mainly by oil, which is already persistently above 95 dollars per barrel, and there are a number of predictions that it may even reach 100 dollars. The high quotes are the result of the combination of two factors. On the one hand, there are better than expected results in the major economies and especially in the USA. And when production is going, there is high consumption. This year even reached records – the unprecedented 101.8 million barrels on average per day.
On the other hand, is the drive of Saudi Arabia and Russia to limit supply. This depletes countries’ inventories and raises prices.