Gasoline reaches 2 euros per liter in 13 provinces despite the small ‘truce’ of oil

The pressure of the conflict in Ukraine continues unabated for consumers. In recent days, the prices of fuels have registered a strong increase in the poles of the service stations and reach levels never seen before in Spain. According to data from the Geoportal of the Ministry of Ecological Transition, some gas stations already exceed two euros per liter.

On Seville and Granada the highest gasoline prices were registered yesterday, at 2,099 euros/liter. Gasoline above 2 euros was also seen in Asturias, Barcelona, ​​A Coruña, Cuenca, Girona, León, Murcia, Lugo, Pontevedra, Teruel and Zamora.

According to the data provided by the Miteco, in a single day the maximum price in Madrid it rose 5 cents, up to 1,999 euros per liter. At current levels, filling an average 55-liter tank -such as that of, for example, a Dacia Sandero, the third best-selling model in Spain in 2021 and the third best-selling in January 2022- would cost almost 110 euros.

The latest figures from the European Union Petroleum Bulletin, dated Monday of last week, indicate an average price for gasoline 95 of almost 1,609 euros/liter for our country and 1,497 euros/liter for diesel. This would mean that to fill the tank a consumer would have to pay more than 88 euros in the case of gasoline and more than 82 for diesel.

To put it in comparison, filling the tank of the car is 26% more expensive than a year ago in the case of gasoline and 29% in the case of diesel. At that time it cost 69.74 euros and 63.28 euros, respectively. With the weekly update of these prices, the average cost of fuel is expected to increase significantly.

respite for crude

On the last day, until half past seven in the afternoon, the market gave a break to the reference oil in Europe, by drop 12% down to $115 a barrel, after touching $130 this week.

Despite the declines, the black gold they are well above pre-invasion prices, which were already very high due to escalating tensions between Russia and Ukraine and bottlenecks in the global supply chain. And this Wednesday the prices return to turn to the rise in spite of the ‘truce’ of yesterday.

According to consultancy Tempos Energia, the Russian invasion has set off alarm bells showing that world markets are dangerously ill-equipped to handle any disruption to the region’s exports.

“This would not offset total Russian exports”

“If we make a hypothetical exercise: the combination of releases of US strategic reserves, along with increased production of crude oil from Saudi Arabia and the United Arab Emirates, they could be compensated more than two or three million barrels over the coming months” he stressed the CEO of Tempos Energy. “They can add another million barrels for August, assuming that Tehran return to the markets.”

However, Aceituno explained, “this would not compensate for total Russian exports of around seven million barrels, of which 4.5 million are crude oil.” In short, “these potential sources of supply for the coming months, are not enough to compensate for a prolonged substantial loss of Russian oil“.

“The next frontier of prices for the Brent will be defined by prices in search of demand destruction”

From Tempos Energía they estimate that “the next frontier of the prices for the Brent will be defined by prices in search of demand destruction”. In this way and in the short term, “the magnitude of the impact on supply is so great that oil prices will be above 120 dollars a barrel Brent and for a few months.

“When the demand destruction window arrives, the downward curve will begin, estimating that peaks above the $140 a barrel“, has concluded the consultant.