PHM prices are still attacking record values, while it would take little and the price could drop quite substantially.
The energy crisis caused by the war-led world political situation in Ukraine will not only disappear. Fuel prices are still at a high level and it doesn’t look like there will be any major downside. Record gap between gasoline and diesel prices announced in recent days puts diesel owners at an even greater disadvantage engines. They hardly have time to balance the high fuel prices with the lower consumption of their cars. It is as if the European Union “curse” on all that is combustible has slowly begun to unfold: we do not want you on the roads and we will do everything to make your life as unpleasant as possible.
The current situation is accelerating the transition to electromobility
And it should be noted that European Union officials are starting to do quite well. We do not want to suspect that they are using the war in Ukraine and the resulting fuel supply crisis for their own purposes. Even if it almost seems like that. However, the opposite approach – helping drivers in today’s tough times – is also not very obvious. One thing emerges from all this: what is happening now will only accelerate Europe’s transition to zero-emission vehicles and hence overall electromobility. Expensive gasoline, even more expensive diesel, isn’t the “electrical system” an advantage after all? We don’t think so.
However, a downward trend has been observed in recent weeks with a slight optimism on the trend in oil prices. In June the price was $ 125 per barrel, now it is in the range of $ 90-95 per barrel. One liter of the best-selling Natural 95 petrol is currently sold in service stations in the Czech Republic for an average of 42.82 crowns, a week ago it cost three cents more. However, diesel became more expensive at an average of 47.34 crowns. However, the good thing is that no further price increases are expected. “Especially for gasoline, we expect the price to drop by more than 1.2 crowns per liter in the next week. For diesel, the discount should be tens of cents,” says company analyst Finlord Boris Tomčiak.
The key to fuel availability is called OPEC
The OPEC group (Organization of Petroleum Exporting Countries), which includes, for example, Saudi Arabia, Iran and the United Arab Emirates, has decided to reduce oil production by 2 million barrels per day. In the next future this can mean a severe blow to us, because it is this group that has the majority stake to check the market price of a barrel of oil. And if oil production falls, its price will rise. Logically, what is abundant and available at any time is cheap. What is rare and rare is expensive. How simple it is.
The reduction in production can be seen as an action by the OPEC group that tries to express an attitude of disapproval towards the West. The United States has made clear its intention to increase oil production to limit the world’s dependence on Russian oil. However, Saudi Arabia has decided to extract as much money as possible from the situation. Money first. Reducing production will increase the price and Russia, which is not a member of OPEC but is a member of OPEC +, will certainly not be angry. Rising oil prices are fueling Putin’s plan to make all energy expensive / inaccessible. And we can only hope and wish that this plan doesn’t come true in the end.
