Within 24 days the international price of oil has fallen by $16.5, to $82 and the lowest level since January, a drop of 17%, while in Greece the average price of unleaded oil fell by only 7 minutes, that is 3 .3%
By Chrysostomos Tsoufis
November 4th. The international price of oil is a breath away from $100/barrel, at $98.5. In Hellasthe average price of unleaded is at €2.07, diesel was 2 minutes higher at €2.09 and heating oil with the 2 subsidies from the government and refineries at €1.36.
November 28. Within 24 days the international price of oil has fallen by $16.5, to $82 and the lowest level since January, a drop of 17%. Things in Greece did not go exactly like that. The average unleaded price fell just 7 minutes, or 3.3%. In other words, the price fell 6 times less than the international prices. The average price of diesel traffic fell by 15 minutes, by 7%, to €1.94. Admittedly a better response but still the decline is less than half of the international decline.
16 minutes, the price of heating oil fell to €1.2, the lowest level since the start of its sale on October 14. The reaction was even better here with a price reduction of 11.7%, but again a significantly smaller drop compared to that of international prices.
It becomes clear once again that while increases pass immediately, decreases are characteristically slow.
Market players, they used to say to skai.gr that… the pioneers of the delay are the refineries and then the gas stations. And because the wolf is happy in hiding, the gas station owners themselves are making excuses for profiteering phenomena – by a very small minority – and are asking for intensified controls from the Ministry of Development, which yesterday announced fines, among other things, to gas stations in Epirus for unfair profiteering.
The market itself avoids making estimates on the future course of fuel prices in Greece precisely because there is too much uncertainty internationally as countervailing forces compete with each other.
On the one hand, the consultations taking place to impose a ceiling on the price of Russian oil and the expected reaction of Russia may reduce the supply and lead to a new increase.
Production reduction can also be decided by OPEC to put upward pressure on prices.
On the other hand, Europe is preparing to go into recession and China is in the grip of quarantines, so a decrease in demand is expected and therefore prices may continue to decline.
At this price level, however, it should be considered difficult for refiners to maintain the 7 cent diesel subsidy beyond the last day of November. The decisions, however, will be made in the next few hours. Instead the 25 cents subsidy from the budget will be maintained even if prices fall further. Also, as prices fall, the chances of a new Fuel pass decrease as the government will choose to direct the fiscal space created to combat shelf precision.
Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.
I am Janice Wiggins, and I am an author at News Bulletin 247, and I mostly cover economy news. I have a lot of experience in this field, and I know how to get the information that people need. I am a very reliable source, and I always make sure that my readers can trust me.
