Gasoline And Gasoline Prices Hit An 11 Month High

2021-02-18   |   by CusiGO

Oil prices continue to rise, hitting an annual high this week. The US benchmark barrel (West Texas) and the European benchmark barrel (Brent) hit $61 and $65 respectively on Thursday, the highest prices since January 2020. Similarly, according to the European Commission’s oil bulletin, gasoline and gasoline prices in Spain (and the rest of the world) continue to rise, with 95 liter gasoline and 1.13 Euro gasoline at 1.25 euro and 1.13 Euro respectively, the most expensive prices for these fuels since March 9. Antonio Hern á ndez, a partner at ey, a consulting firm, attributes these growth to the recovery of liquidity and the decline of oil production in some countries, but most importantly, the hope for a medium-term recovery of the global economy: “the oil market is closely related to supply and demand, but also to the global economy Expectations. ”

Since early November, when fuel prices began to rebound as a result of vaccine advertising, gasoline prices have risen 9.25% in Spain and 11.5% in the rest of Europe. A wave of infectious diseases, flow restrictions and vaccination delays, but the oil market is global, and if other countries, such as China and the United States, have started to act, the oil market will move forward. As Asociaci ó n Espa ó Ola de operadores de petroleum ó n explains, “regardless of the recovery of the Spanish economy and other economies, international prices are the same for everyone.”

In addition to the increased demand for crude oil in the world’s two largest economies, Antonio Hernandez also explained the price rise caused by the oil producing countries and the organization of allies (OPEC +) cutting oil production in February and March, The results of the global economic forecast. According to the International Energy Agency, this also highlights the decline in global crude oil inventories. “By the end of this year, crude oil inventories have fallen sharply”, “demand has increased, supply has decreased and prices have risen,” analysts concluded.

According to aevecar, the Spanish Association of fuel and fuel retailers (aevecar), the rise in crude oil prices has led to a rise in fuel prices, but has not led to an increase in the profits of Spanish gas stations, whose sales will fall by 25% to 30%. “Some people think that when the price goes up, the gas station will win… No, they earn less because they sell less, “says Victor Garcia, Secretary General of employers’ organizations.

In 2020 and early 2021, the flow between cities and communities stopped, leading to a decline in the sector’s income since the outbreak. In fact, at gas stations near the border of the autonomous region, sales fell by 70%.

Garcia explained that for every liter they sell, they earn about 13%, while the remaining prices are taxes (more than half), crude oil prices and wholesaler profits. However, Spain’s final fuel price tax rate is lower than the EU average.

Although the industry is “very dissatisfied”, since aevcar, they claim that the number of gas stations closed last year is not significant, which is different from other industries, where the decline in turnover has led to a series of closures, such as the hotel industry. Closing a gas station is “very complicated,” especially those that have been in operation since the 1960s, 1970s and 1980s. “The rule of those years was: if you installed a tank, put river sand in it, so if you had a leak, it would seep into the ground. Getting rid of these gas stations requires you to do an environmental survey and then clean up, which could be more than 100000 euros. ”

Therefore, the representative believes that it is not expected to be closed in the next few months, but that “many changes will take place in the owners, especially in the small stations without financial strength”.