WHY HAS THE PRICE OF GASOLINE INCREASED DRAMATICALLY ?

We have all heard of the rise in the price of gasoline and no one likes it, but what is the cause of all this ?

What makes the gasoline price?

·       Excise duty : 0,73€

·       IVA : 0,35€

·       Margin of earning for the distribution : 0,21€

·       Price of matter first : 0,66€

The cause of the recent price increase is the cost of the raw material, the price of oil. Only the price of the raw material can vary, the other prices remain fixed.

The price of oil increased also before the war in Ukraine because  

• The pandemic has boosted the demand for fuel
• Oil exporting countries have limited supplies
• The shift in funding to cleaner energy sources has led to higher costs for extraction
•  In Europa there’s an unfavourable exchange rate between the euro and the dollar

The crisis in Ukraine has fuelled fears of a shortage of Russian oil. So the price has risen to 129 dollars a barrel, a price like this hasn’t been seen since 2008.

Why is Russian oil so important?

Russia is the third largest producer of oil barrels in the world.  Have a look at these data: 

1.  United States  16476 thousands of barrels per day

2.  Saudi Arabia  11039 thousands of barrels per day 

3. Russia  10667 thousands of barrels per day

 Matteo T., 4scB