Fuel, Russia embargo goes off today: risk of price increases on petrol and diesel

For Absoutenti, one million barrels per day will decrease: more costs for supplies from other countries such as the USA and China, possible speculation linked to the race for hoarding

New consumer alarm on the petrol front” due to the embargo on Russian products, which will start today. A measure which, according to Assoutenti, ”is likely to determine new increases in fuel prices at the pump with damage both in terms of the cost of refueling and inflation”. In a note, the association recalls that from today ”a million barrels per day from Russia will be depleted, prompting the various countries to obtain supplies of petrol and diesel from other states such as China and the United States, with consequent higher transport costs, without counting the possible speculations linked to the race for hoarding”.

The price lists at the pump, according to a study by Assoutenti which compares the data of 2012 with those of 2022, ”could thus reach new records in Italy, considering that already today diesel fuel in served mode has returned to exceed 2 .5 euros per liter on various routes. A business that of fuels yielded a good 9.4 billion euros in Italy in 2022 only by way of extra profits”.

The average price in the second half of 2012 was 109.85 dollars a barrel, down to an average of 94.65 dollars in 2022 (second half); in the same period the euro/dollar exchange rate went from an average of 1.32 to an average of 1.04, with the consequence that in euro a barrel of oil increased by +9.4% in 10 years.

In the same period, the average price of fuel at the pump (excluding taxes and duties) rose by +23.4% for petrol (from 0.757 to 0.934 euro/litre) and by +38% for diesel (from 0.800 to 1.104 euro /liter). If we also consider the inflation recorded between 2012 and 2022 in Italy, the extra profit deriving from the difference between oil and fuel prices reaches 0.190 euro/litre for petrol, 0.264 euro/litre for diesel .

This means that, on the basis of fuel consumption recorded in Italy in 2022, equal to 10,384 billion liters of petrol and 28,526 billion liters of diesel, last year, thanks to the growth in price lists at the pump, extra profits were recorded for 9 39 billion euros: 1.973 billion on green, 7.417 billion on diesel. Money that has come out of the pockets of citizens to end up in those of oil companies, intermediaries and distributors.

“Extra-profits which -explains Assoutenti- now end up under scrutiny by the Antitrust, Mister Prices and by the Minister of Enterprise Adolfo Urso, to whom we have turned over our study in order to verify the existence of speculative phenomena on fuels which have produced enormous profits for few and economic damage for millions of Italian motorists”.