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Oil falls below pre-war levels for the first time. But gasoline is still more expensive

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Oil falls below pre-war levels for the first time.  But gasoline is still more expensive

A barrel was quoted this Thursday at $93.2 a barrel, the first time it has reached a lower price than on the eve of Russia’s invasion of Ukraine. Fuel prices in Portugal are also falling, but remain more expensive than then. The devaluation of the euro is one of the reasons. But there’s more math

Crude oil hit $93.2 a barrel midway through this Thursday in the Brent Index, commonly used as a benchmark for Europe. This is the first time that the price has fallen below the level it was before the Russian invasion of Ukraine on February 24th. Fuel, however, is still much higher than then.

Oil in a sharp fall

Over the past month (since July 7, when it closed at $113.5), oil has fallen in price by 18%. And from the high of this year (March 7, when it reached $139.13 per barrel), the drop is 33%.

But the mark reached today is relevant, because it is over the past five months that the war in Ukraine has lasted that the price was lower for the first time on the eve of the invasion: on February 23, a barrel of oil cost $ 94.05.

Today is cheaper.

But not fuel.

Diesel remains 10% more expensive… even after tax cuts

However, the fall in the cost of oil does not have a proportional effect on the cost of fuel in Portugal.

The values ​​currently practiced in Portugal are below the highs reached since the start of the war: the final price of plain diesel this Wednesday averaged 1.826 euros per liter in Portugal, 27.4 cents less than the maximum of 2.1 euros per litre. June 23; The price of regular gasoline 95 this Wednesday was 1889 euros per liter, which is almost 30 cents less than the maximum of 2188 euros per liter practiced on June 10th.

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However, prices remain higher than before the Russian invasion of Ukraine:

This increase is not large only because the government, in the meantime, has reduced the tax on petroleum products (ISP), which was extended until the end of August. As explained in the message of the Ministry of Finance in early July, “the reduction in the tax burden will be 28.2 cents per liter of diesel fuel and 32.1 cents per liter of gasoline.”

In other words, were it not for the temporary tax cut, today’s fuel would be at the following prices:

In other words, although oil is already below what it was before the war, the price of diesel would have been almost 23% more expensive if the government had not lowered the ISP.

Why isn’t the fuel dropping? Euro factor (and adjusted)

The first reason is the euro, which depreciated about 9.3% against the dollar on the eve of Russia’s invasion of Ukraine. Thus, if the price of Brent is lower than in dollars, then when converted into euros, it remains 9% more expensive.

This explains António Comprido, president of Apetro, an association representing oil companies in Portugal. “There is an exchange rate aspect,” he points out to CNN Portugal, “we cannot compare the price of a barrel of oil in dollars with the price paid for fuel in euros.”

However, this devaluation of the euro only partly explains the difference between the increase in fuel and the current leveling off of oil compared to the pre-war period. This is where António Comprido argues with a rationale that has been repeated over the past few months: fuel distributors are not buying crude oil (valued by the Brent index), but petroleum products. And they differ in different ways.

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“The price of fuel is not tied to the price of a barrel,” replies the president of Apetro. “It so happened that the price of petroleum products rose much more than oil. This happened because in Portugal we used a lot of refined products that came from Russia. The embargo on Russian oil has a direct impact.”

Will prices drop further?

The evolution of international markets suggests a further decline in final fuel prices next week, maintaining the trend of the last month and a half. “Since mid-June, there has been a drop in prices,” António Comprido emphasizes.

As for the development after next week, the volatility of the last few months does not allow one to be sure. World oil prices fluctuated as a result of sanctions against Russia, diversification of supply sources, production announcements by producing countries and economic expectations.

Fears of an economic recession next year in the United States and perhaps in some European countries are one of the factors that led to the fall in oil prices. The less economic growth, the less energy consumption. Soon the demand for oil will decrease.

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Economy

Debt collected by Social Security to reach lowest in a decade in 2021 – ECO

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Debt collected by Social Security to reach lowest in a decade in 2021 - ECO





Debt collected by Social Security to reach lowest in a decade in 2021 – ECO































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Economy

TUGA offers new electric vehicles in three segments: from sports to trucks – Computers

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TUGA offers new electric vehicles in three segments: from sports to trucks - Computers

Based in Vancouver, Canada but co-founded by Portuguese Cesar Barbosa, TUGA Innovations is developing solutions for urban mobility. AT February showed its first working prototype of the TUGA electric car, but has now revealed its plans to develop a whole family of urban mobility solutions.whether for use by independent consumers or for operators with a fleet of commercial models.

The company says that based on market research, it has decided to change its strategy, highlighting TUGA Innovations’ ability to easily transform the functional design aspects of its base model. So it’s over several predefined vehicle configurations which, although sharing a few common design featurestarget different uses and customer needs, whether it is a focus on mobility, services or utilities.

TUGA Innovations offers three vehicle categories as well as proprietary component options such as retractable rear axle or retractable landing gear, which the company later says will be segmented to suit different market sectors..

See the various TUGA models in the gallery:

The first category is dedicated limited-edition high-performance cars that can transformsuch as removing the front windshield and rear bin to create the look of a roadster. They fit the TUGA Thunder and TUGA Falcon models.

The second group of vehicles includes TUGA Commuter and TUGA Deliver, which, in fact, are demonstration models of the manufacturer. They allow you to swap body parts that have now been redone with more safety components added.. Vehicles can also be purchased in a package called Mobility as a Service (MaaS) for functional integration into delivery fleets as well as daily commuting.

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Finally, the TUGA Cargo and TUGA Pickup models. expand your chassis to meet the needs of urban micrologistics. The vehicles have a capacity of 600 liters of cargo space in an 88 cm long model, combined with an extended 128 cm rear axle for added stability.

See prototype images in the gallery:

Regardless of category, the startup claims its entire family of vehicles has been designed to make transit and parking easier.. The retractable axle improves stability at high speeds, and the retractable chassis allows passengers to easily get inside the vehicle.

According to Cesar Barbosa, his startup creates not just a vehicle, but a solution to the problems of urban mobility. The project manager adds that since the presentation of the prototype, the family has expanded to offer different products and other features of its electric vehicles..

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Economy

Gas. Bottle sellers adjust prices

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Gás. Vendedores de garrafas corrigem preços

















Gas bottle sellers have adjusted prices that are not in line with government regulations limiting those values, said the National Energy Sector Organization (ENSE), which returned yesterday to review activity.

After conducting the first inspection on Tuesday, which found “high non-compliance” in 23.4% of outlets, the organization again carried out “108 inspection actions in Castelo Branco, Portalegre, Santarem, Evora and, in the municipalities of Cascais, Oeiras and Sintra in the Lisbon area, focusing on petrol stations, hypermarkets/supermarkets and other retail outlets.”

During this second check, ENSE found “seven violations (corresponding to 6.5% of the actions taken) in the selling prices (from 0.36 euros to 3.39 euros for T3 bottles and 6.92 euros for T5 bottles) of this type of product.” But he left a guarantee: “Of these actions, it was established mainly the correction of inappropriate prices, namely in relation to inflated amounts charged in several hypermarkets of the same brand.”

The maximum prices per bottle of liquefied petroleum gas (LPG) set by the government came into effect on Tuesday, saving almost 3.2 euros on a 13 kilograms (kg) bottle of butane.



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