Sat. Apr 4th, 2020

Fuels become cheaper and fall to three-year lows

The price of the fuels has played new minima per year this week after falling as much as 4.6% compared to seven days ago, thus falling to minimum levels since the second half of 2017, according to data from the European Union Oil Bulletin collected by Europa Press.

Specifically, the average price of diesel oil It has dropped 3.8% compared to last week, to stand at 1,084 euros, its lowest level since September 2017.

In this way, diesel fuel threatens to break the bar for the euro, something that has not happened since August 2016. However, in the suppliers of the Spanish geography at gas stations in various autonomous communities, it is already possible to find prices below that level.

An oil well

An oil well
(Removing Ernesto / Efe)

In the case of the liter of gasoline, this week has registered a decrease of 4.6%, to mark an average price of 1,176 euros, at a low since July 2017.

This important decrease in prices of fuels is accompanied by collapse who is suffering in those markets international crude oil, which has taken it to minimums in twenty years, weighed down by the dispute between Saudi Arabia and Russia with regard to supply and, especially, due to the collapse of demand due to the world coronavirus crisis.


Total change in trend compared to the start of the year

Since the annual highs that fuels marked in the first fortnight of January, after the escalation in the price of crude oil due to the tensions in the conflict between the United States and Iran, they had chained one decline after another, cut just four weeks ago, which results in a reduction in these more than two months of up to 13.5% in the case of diesel and 11.3% in gasoline.

Despite the collapse registered by oil, with a drop of less than half in its price compared to January, the decrease in fuel prices does not vary in the same proportion, since they do not have a direct relationship with the price of the a barrel of crude, but depend on the prices of gasoline and diesel in the wholesale markets, all of them in dollars.

In addition, the prices published by the Oil Bulletin correspond to the average of the daily prices of the previous week, so there is a mismatch between the published prices and the real prices.

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