Europe

Painful price of petrol pump

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Currently, the price of fuel for transportation is over 2 euros per liter, which is almost the same as most other European countries. Portuguese diesel rose from € 1.78 per liter on May 28 to € 2.08 by June 22. Gasoline (Octane 95) rose from € 1.88 in early May to € 2.17 in mid-June. The Octane 98 is more expensive and not all gas stations sell it.

The average car drive from Lisbon to Faro costs just over € 76 one way. It is about 277km via A2. From Lisbon to Porto – 341km via A1 – costs around € 85.75. In other parts of the world, some prices are higher and more are lower. The average price of gasoline per liter in the world these days is 1.89 euros.

Crude oil, a fossil fuel that refines gasoline and diesel, is imported by Portugal from Angola, Saudi Arabia and Algeria. Natural gas, the fuel used for heating and power generation, is imported from Nigeria and the United States. Crude oil and natural gas are transported to the deep-sea port of Cineth, south of Lisbon, Europe’s main port closest to the United States.

Portugal itself has both onshore and offshore areas, including oil, and a few years ago the government signed concessions to several major oil companies. The concessions off the coast of Algarve and Peniche, which are highly controversial among environmentalists, were terminated by the government in 2017. There is still no clear evidence that Portugal has enough hidden oil to consider commercial mining.

Aside from that, former Minister of Environment and Energy Transition Joampedro Matos Fernandez said Portugal has its own reserves in addition to its strategic reserves of gasoline and diesel, which guarantee 90 days of consumption. I did.

Natural gas reserves are also at very comfortable levels, exceeding 80% of the country’s total storage capacity. Fernandez says there is only one gas pipeline connection from Spain to France, so it is important to increase gas pipeline connections to other parts of Europe in Iberia.

According to the World Bank, the war in Ukraine could keep oil and gas prices at historically high levels until the end of 2024. Energy prices are expected to rise by more than 50% in 2022 before easing in 2023 and 2024. Prices may be even higher and more volatile than currently expected due to long-term wars or additional sanctions against Russia.

Europe and other countries have imposed strict sanctions on Russian imports in an attempt to prevent the Kremlin from funding their exorbitant attacks. It backfired in the sense that stopping imports of Russia’s main export commodities, oil and gas, had harmed not only Russia but also the West.

Germany is particularly concerned that Russia’s move to cut Europe’s natural gas supply risks creating a situation similar to the collapse of energy markets and the 2008 global financial crisis.

Russia, on the other hand, has benefited from selling large amounts of oil to China and India at discounted prices. This surge in demand from Asia makes up for the significant decline in the number of barrels sold to Europe.

China’s imports of Russian oil increased 28% in May this year from the previous month, but India bought more than 760,000 barrels a day because it consumed very little Russian oil.

Due to the risks associated with the sanctions imposed to punish Russia’s invasion of Ukraine, oil is sold at significantly discounted prices. Still, soaring energy prices have led to advances in Russia’s oil revenues, earning $ 1.7 billion more last month than in April.

To Renport

Renport is a journalist and writer based in Algarve. Follow Len’s thoughts on the current situation in Portugal on his blog. algarvenewswatch.blogspot.pt

https://www.portugalresident.com/painful-prices-at-the-petrol-pumps/?utm_source=rss&utm_medium=rss&utm_campaign=painful-prices-at-the-petrol-pumps Painful price of petrol pump

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