It took two years, two autumns… for the Greek drivers to see I.X. fuel prices to fall below 2 euros/liter.
In 2023, at such a time, unleaded gasoline at medium levels was at 2,041 euros/liter and diesel at 1,848 euros/liter. Fuels since last year have fallen by more than 14.5%, while in 2022 unleaded was in the region of 2 euros/liter.
The reductions recorded this year give a significant breath of fresh air to car drivers. but also to businesses and professionals in the transport industry and beyond.
The reductions
But why did it take two years for the price of petrol to return to levels below 2 euros/litre? The CEO of Elin Yiannis Aligizakis, speaking to OT, talks about a paradox in the international oil market.
“Despite the turmoil in the Middle East, Brent oil is still hovering around $74 per barrel. If we look at the market data, there is oil production with the US covering any needs and in fact despite the reduction in production made by the OPEC member states. There are also sufficient stocks in the market,” he says.
Mr. Aligizakis continues by telling OT how “prices are moving at low levels when the previous two years Brent was flying… at 95 to 98 dollars a barrel because of the recession. The decline in growth rates is recorded in Europe, such as in Germany and also in China. So the demand for fuel also slows down. In the previous two years and after the lifting of the lockdowns of the pandemic, the market developed unprecedented speeds accompanied by high growth rates of the economies that had been compressed due to the ban on movement and any activities in the economy”.
According to him, “at this time, the pessimistic estimates for the economy outweigh the geopolitical disturbances. Without, of course, excluding the effects of a possible extension of the ignition in the Middle East”.
The Greek phenomenon
In the Greek fuel market, prices are falling, with unleaded petrol being sold at gas stations in Attica even below 1.70 euros/litre.
The CEO of Elin explains to OT, that “the reductions should have been even greater”. And why isn’t that happening? What is the brake…?
He shows the fuel taxes. “Only on the price of unleaded petrol, taxes, such as VAT, VAT, fees, etc., correspond to 70% of the total value. So any reductions made in international markets only go to 30% of the final price. Essentially, taxes cut into the reductions,” says Mr. Aligizakis. And he mentions the following example: “Even if the price of Brent were to drop to zero, unleaded gasoline in Greece would be sold for 1.10 euros per liter…!”.
Source: ot.gr
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