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Oil surge slashes gasoline bonus savings in just two months

The government may extend the exemption on per liter of fuel beyond June 30. After Brussels continues to delay the…

By admin , in news , at May 31, 2022

The government may extend the exemption on per liter of fuel beyond June 30. After Brussels continues to delay the application of the gas cap, the executive has only this mechanism to partially control the increase in inflation. A measure on which Moncloa has pinned hopes. According to Minister Teresa Ribera, this will reduce the electricity bill by only between 20 and 15%.

In recent weeks, the prices of both petrol and diesel have come down drastically. On 1 April – when this measure came into force – a liter of gasoline 95 It was sold for an average of 1.81 eurosPrice has gone up after two months up to two euros, A period in which the effect of the bonus has been mitigated by an increase in fuel prices. The application of the measure implies a discount of 20 cents per liter of fuel.

The application of criteria has become a headache from the very beginning. Conflict between government and service stations has remained stable. He has accused Moncloa of raising prices at several gas stations, with the region – for its part – criticizing the delay in advance of payment by the Treasury. An inconvenience which has been transferred to the consumer, who had to suffer as a result of a fight between the distributors and the executive during the first days.

Over 1,420 million in two months

Brent price expects a fresh hike in petrol and diesel prices in the coming weeks. rising oil prices According to Treasury technicians, the effect of the government bonus could be extended, requiring an effort of ₹1,420 million for public accounts.

During the last days, the executive has opened the door to expanding the measure. Last week, the transport minister, Raquel Sanchez, was in favor of extending the bonus period “if necessary”. In an interview given toRadio Club Tenerife’, the head of the Mobility and Urban Agenda confirmed that the Council of Ministers is evaluating this possibility. If implemented, the impact on public spending would be greater than expected, but the impact would be less than what was projected weeks ago.

Brent will continue to grow

Several factors predict the rise in crude oil prices in the future. A potential European veto on Russian oil, OPEC’s refusal to increase output and China’s reopening – after weeks limited by the resurgence of COVID – could continue to prop up the price of a barrel of Brent.

The awakening of demand at the Asian giant – followed by a fresh break in activity – could create tension in the market, which could further push the price/litre announced data on a panel of Spanish gas stations.

Their return to the market will increase demand and «Brent will position itself around $120 level», according to estimates by Antonio Acetuno, CEO of Tempos Energia, in statements to El Debate.

38% of the total cost of a liter of fuel comes from wholesale cost, which is influenced by the price at which oil companies buy the crude they process to convert it to gasoline or diesel. It takes time for the increase in the price of Brent to be transferred to the end consumer, as companies need time to process the crude.

Oil surge slashes gasoline bonus savings in just two months

2022-05-31 02:59:49