March 6, 2021

Fuels drop again and diesel remains below the euro



The prices of fuels have fallen again in the last week, 1.81% for gasoline and 2.25% for diesel, and the latter has remained below the euro, something that has not happened since the week of 11 August 2016.

According to data collected from the Oil Bulletin of the European Union (EU), which has been released this Thursday, the average price of automotive diesel has stood at 0.999 euros per liter, slightly below the euro.

To see the price of this automotive fuel below that level, you have to go back to the week of August 11, 2016, when it marked a price of 0.996 euros.

For its part, the average price of gasoline has stood at 1,088 euros per liter, at levels of March 2016, a year in which excess supply and weak demand placed oil in its worst records since 2004.

The fuel prices are chained, after the information released today, eight consecutive decreases, which take place in an environment of low oil prices in the markets due to the fall in demand derived from the measures imposed to stop the expansion of the pandemic of the COVID-19.

With the new prices, filling an average 55-liter gasoline tank costs 59.84 euros and if what is refueled is diesel, 54.94 euros.

Since 2020 began, gasoline has been reduced by 17.58% and diesel, by 19.89%.

Compared to a year ago, 95 octane gasoline is now 19.59% cheaper and diesel, 20.53%.

Gasoline now costs 4.81% less than a month ago and diesel, 5.49%.

The gap with the maximum prices that these fuels reached seven years ago continues to widen, and that of gasoline is 28.52% lower and that of diesel fuel, 30.87%.

The petrol and the diesel of automotive industry marked their record price the week of September 3, 2012, when they stood at 1,522 and 1,445 euros, respectively.

In the markets, oil has changed its trend since last Tuesday and its price is rebounding strongly.

This Thursday, at mid-morning, the barrel of Brent – the benchmark in Europe – maintained the recovery it registered in the previous session and rose 11.5% compared to the close on Wednesday, to $ 25.31.

A lower rise in crude oil reserves in the United States, which has lowered the fear of exceeding storage capacity, and the fact that many countries have begun to relax containment measures due to the coronavirus, also encourages the price of Brent, weighed down in recent months due to the sharp drop in demand.

All in all, the trajectory of oil is expected to be volatile, and the International Energy Agency (IEA) has warned that global demand will drop 9% in 2020, with consumption falling back to 2012 levels.

However, fuel prices do not have a direct relationship with the price of a barrel of oil, but depend on those of gasoline and diesel in wholesale markets, all in dollars, according to the Spanish Association of Operators of Petroleum Products (AOP).

In the case of Spain, the reference markets are the Mediterranean and Northern Europe, markets that, apart from the price of crude oil, are influenced by the supply and demand for these products and the euro / dollar exchange rate .

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