Diesel and petrol prices have started rising again despite the government’s move to offset pump prices by 50 paise by the end of the year. Diesel fuel once again crossed the threshold of 8 lei, and gasoline rose to 7 lei. Energy expert Dumitru Kiselice says the main reason is OPEC’s decision to cut oil production.

The government’s recent move to extend the 50 baht per liter compensation for petrol and diesel until the end of this year, a move which Prime Minister Chuke said had stabilized and even lowered prices, is no longer having the desired effect.

A week after the resolution adopted by the Government, the prices of not only diesel fuel, but also gasoline began to rise gradually.

So, if on September 29 the average price of a liter of diesel fuel was 7.95 lei, then on October 7 the price of diesel fuel again crossed the threshold of 8 lei and on October 11 it rose to 8.13 lei, data show Peco-online.ro.

The prices include compensation in the amount of 50 money as decided by the Government.

While we are used to higher diesel prices due to import dependency, the hike in petrol prices is the first after several months of continuous price cuts, especially since July 1 when the government stepped in with the 50 fuel compensation measure. money.

So, if on September 29 the average price of a liter of gasoline reached 6.61 lei, then from October 7 it rose to 6.63 lei and reached the level of 6.73 lei on October 11.

Energy expert: The main reason is OPEC’s decision to cut crude oil production

Asked by HotNews.ro for an explanation for this price increase, energy expert Dumitru Ciselice, president of the Intelligent Energy Association, says the main reason is OPEC’s recent decision to cut crude oil production.

• “For about 2 months, we have seen the oil price stabilize at 450 lei per barrel, and this lull in the crude oil market has led to a drop in prices, both for gasoline and diesel fuel.
• However, over the past week, the price of a barrel of oil has increased by 12%, and this fact was immediately reflected in the price of gasoline, considering that gasoline is produced from crude oil. As the price of the basic material rose, so did the price of gasoline. I expect this growth trend to continue in the near future.
• Why did the price of a barrel of oil increase? The main reason is OPEC’s decision to limit supplies by cutting crude oil production.” This was stated by Dumitru Kizelice for HotNews.ro on Wednesday.

According to him, things are going in tandem with diesel.

• “The price of crude oil fell in early August by about 14% to 450 lei per barrel, which also caused diesel to fall, but not as much as gasoline. The increase in the price of diesel fuel is caused by the high demand for diesel fuel, especially in Ukraine, where there is currently no production capacity left.
• In addition, Romania depends on important imports of diesel fuel and competes with the demand of other countries of the region – Ukraine, Bulgaria, etc.
• The Government’s move to offset the fuel price by 50 paise was beneficial and helped bring prices down, which was reflected in a sharp fall in early July when the emergency decree came into effect.
• Subsequently, price changes were determined, on the one hand, by the evolution of oil prices, and then by the evolution of prices for diesel fuel sold in Eastern Europe.” said the energy engineer.
  

What are the prices of petrol and diesel in Bucharest today?

Data from the Peco-online.ro application show that the 5 main gas station chains Petrom, Lukoil, OMV, MOL, Rompetrol had the following prices on Wednesday, October 12, 2022:

Standard gasoline:

• Petrom: from 6.68 to 6.75 lei
• Lukoil: from 6.66 to 6.71 lei
• Mole: from 6.77 to 6.81 lei
• OMV: from 6.80 to 6.83 lei
• Rompetrol: from 6.77 to 6.81 lei

Standard diesel:

• Petrom: from 8.11 to 8.14 lei
• Lukoil: from 8.11 lei to 8.14 lei
• Mole: from 8.16 to 8.20 lei
• OMV: from 8.19 to 8.22 lei
• Rompetrol: from 8.16 to 8.20 lei

We will remind, during the meeting in Vienna OPEC+ agreed on the largest reductions in oil production (two million barrels per day in November) after the 2020 COVID pandemic, reducing supply in an already battered market despite pressure from the United States and other countries to increase oil.

OPEC+’s decision to cut oil production, despite stiff opposition from the United States, further strained already strained relations between President Joe Biden’s White House and the Saudi royal family.

The Kremlin on Sunday hailed OPEC+’s decision this week to cut oil production as helping to successfully counter what it says is the “chaos” the United States is wreaking on global energy markets.