Rome, 10 March 2022. In many petrol stations the price of dieselhistorically cheaper, has surpassed that of gas. Both fuels travel over two euros per liter and it is feared that the race will continue. The factor that contributed most to the overtaking of diesel was the invasion of Ukraine by Russia.
Gasoline, crazy prices. Diesel over 2 euros. “Act immediately on excise duties”. Stop of the Tir
Race to the last drop
Already in February the price of diesel had exceeded the highs of 2014. “Everyone is fighting for the last drops of diesel, there is nothing more available”, explained an expert in this market to Standard&Poor’s Global. The stocks at a minimum and the slowdown in supplies towards the‘Europe gives United States, Middle East e Russia they then caused an immediate increase in prices. Low Sulfur Diesel Oil Futures (which are used as a scale of comparison for all refined products) rose from $ 644 to $ 1,522 per ton in four months.
War
Normally January and February are months of low demand, but tensions on the Ukrainian border have kept prices high. When Russia invaded Ukraine, the West hit Moscow hard with economic sanctions. Profits for refining (crucial for diesel) have soared globally: markets began to fear a potential shortage of diesel as many buyers decided to stop buying from Russia, despite prices soaring. And with the arrival of summer and the increase in construction, industrial and agricultural activities, S&P Global expects demand, and therefore prices, to increase further. With direct consequences on prices at petrol stations.
The difference with gasoline
The refining process of diesel is less expensive than that of gasoline and that is why diesel has historically been cheaper in most of the world. Gasoline is used practically only to allow our cars to travel, while diesel is used as fuel for cargo, for trucks, for public transport, for generators and to ensure the operation of many factories. The contraction of the market, combined with the scarcity of the product, has caused the increase in refining prices, which – with a domino effect – have therefore led to the overtaking of the price of diesel over that of petrol at filling stations.
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