Petrol and diesel, prices on the rise: what happens from February 5th

IS alarm for diesel and petrol prices that have exceeded 2 euros per litre in served mode, despite the decline in international prices, and are likely to further increase the next February 5thwhen will theEuropean embargo against all refined products from Russia. To aggravate the price increases was the decision of the Meloni government of cancel the excise cut on fuel prices.

“Diesel oil breaks through the 1.9 euro mark. As we feared, with the date of 5 February approaching, i.e. the European embargo on refined products from Russia, prices have soared. That’s why the decision of the Meloni government to raise excise duties and hence the prices of 18.3 cents a litre it is to say the least irresponsible“, said Massimiliano Dona, president of the national consumer union.

A heavy situation for the pockets of consumers, who have not witnessed such increases since the international financial crisis of 2008. The data reported by Dona are those released weekly by the Ministry of the Environment and Energy Security, according to which the price per served for diesel and petrol is respectively 2.007 euros per liter and 2.051 euros per literwhile at self-service prices fluctuate between 1.859 and 1.883 euros for petrol and between 1.904 and 1.926 euros for diesel.

“Compared to December 31, 2022, today a liter of petrol costs almost 23 cents morewith an increase of 13.8%, equal to a sting of 11 and 36 euros for a full 50 liter tank, 273 euros on an annual basis considering 2 full tanks of fuel per month per family, while diesel fuel rises by 12%, over 20 cents per litre, equal to 10 euros and 22 cents per refuelling”, Dona continued. Who did not spare his criticism of the Meloni government, asking for the restoration of the cut desired by former president Mario Draghi.

Will the embargo raise prices?

It is not certain that the embargo will have a widespread and sustained negative effect on the European market, but this it also depends a lot on local policies. Indeed the European Union already has halved imports of Russian diesel from 50% before the invasion to 27% today, meanwhile increasing imports from the United States and from other countries in order to differentiate supplies.

According to statements made by Associated Press by Kadri Simson, European Commissioner for Energy, markets have already had time to adjust after the announcement of the embargo in June and the states have already taken steps to replenish their diesel stocks in recent months. Furthermore, prices could be further contained if the G7 countries finally agree to impose a ceiling on the price of Russian dieselas already done for oil.

Finally, based on what was said in ad Associated Press by Hedi Grati, head of fuel research and refining at S&P global commodity insights, also theexpansion of refining capacity in Kuwait, Saudi Arabia and Omancould “relieve further any price hikes resulting from the divorce with Russia.”