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Fuel: this is the surprising reason for the price increase News from Auto Plus in your smartphone News from Auto Plus in your inbox

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Fuel: this is the surprising reason for the price increase News from Auto Plus in your smartphone News from Auto Plus in your inbox

It’s a fact, fuel is expensive. This has always been the case for several years, but it must be admitted that it is getting worse and worse. In particular, the war in Ukraine, but the conflict is not the only reason. Indeed, this situation can also be explained by the confiscatory taxation imposed by the government, while the taxes amount to no less than 60% of the price per liter. While the 10-cent discount ended on Jan. 1, the amount you pay at the gas station has skyrocketed. So much so that petrol and diesel have reached their highest level in about six months.

Amazing explanation

But how then to explain this sudden increase, when prices seemed to stabilize a little? Well, according toeconomic columnist Emmanuel Leshipre, which works for RMC in particular, would be to put the blame on the back of last October’s fuel shortage. This was caused by strikes at oil refineries. As he explains, then the stability of the supply chain was undermined. It is also specified that “At that time, the primary concern of distributors was ensuring supplies and replenishing stocks, not finding the cheapest gasoline or fierce competition. Moreover, there were significantly fewer transactions at cost in supermarkets“.

Distributors who have benefited

As a result, fuel was then sold more expensive, especially since demand was also very high. Then the strikes led to delays in deliveries, which created great difficulties for managers of service stations. But that’s not all, because, according to the specialist, some distributors also took advantage of the opportunity to increase the margin. However, as he explains, it will not be forever » it must be admitted that the distributors took advantage of the situation to to process markups on the backs of consumers. More precisely, there is no certainty that it will last very long“.

Author: Mary Lizak
Source: Auto Plus

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