Anyone following the gasoline news may have come across headlines like this:
– Panic buying has run out of petrol at the pumps (in the UK/England)
– Oil at three-year high, gasoline prices could rise further
– 95 and diesel prices at record highs
The problem is that the not-so-encouraging headlines are not the result of the grandstanding of clique-hunting journalists, but because things have really gone wrong. It is worth pointing out that the underlying problem is a global one, with oil prices at unprecedented highs, and that the increase in demand has not only led to a jump in the price of the basic product, oil, but also to a rise in the price of finished products. This is good for the oil companies, such as Mol, but it is painful for companies with significant logistical costs and, of course, it is particularly painful for the public, which is facing the price increase in many ways. On the one hand, directly, when they see the prices at petrol stations – in some places starting at five – and, on the other hand, indirectly, it affects consumers, as companies try to pass on the increase in transport costs, which increases the price of many products, to varying degrees.
Oil, refinery costs and many taxes
When it comes to fuel pricing, it depends on a number of factors. One of the most important, of course, is the price of oil, which has been on an upward trend overall in recent months, with a few fluctuations. Moreover, analysts tend to think that the price rise is not over yet, as the ‘bounce-back’ of the world economy and the return of freer travel are boosting demand. But extraction is slower to respond.