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Record rise in oil prices produces disproportionate increase in fuels in the world

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The increase in fuel prices is news that has impacted the world economy after the start of the conflict between Russia and Ukraine, a situation that has led to a large-scale increase in crude oil prices.

The ban on imports of Russian oil by the US and the UK has stressed the market, increasing its volatility and registering the largest increases since 1990. Strong increases have also been recorded in Germany and Spain.

The fluctuation in the price of a barrel of Brent oil has been excruciating since the beginning of the conflict. This week it touched $140, then fell back to $111.14. Hydrocarbons have reached historic levels that directly affect the increase in fuel prices globally.

In the United States, the price of gasoline has reached a new all-time high of $4.14 per gallon, according to the Petroleum Price Information Service (OPIS), the company that compiles and calculates the prices of the American Automobile Association (AAA).

The average price of $4.14 means it’s up 52 cents a gallon in the past week, and 60 cents, or 17%, since Feb. 24, the day the conflict between Russia and Ukraine began. The current price breaks the previous record of $4.11 per gallon, which was reached in July 2008.

In Germany, the price of E10 fuel and diesel at gas stations exceeded the mark of two euros per liter for the first time, indicated the German General Automobile Club (ADAC). The national average price per liter of standard E10 fuel rose to just over two euros ($2.19), an increase of 18 euro cents in six days.

At the same time, the price of a liter of diesel rose by 28 euro cents to an average of 2.03 euros, making it more expensive than the standard E10, despite less tax on diesel.

The panorama in Latin America and the Caribbean is not at all encouraging.

With everything and more aggressive fiscal stimuli by the Ministry of Finance of Mexico, the citizens of that country wake up every day with an increasingly higher price of gasoline, and the disparity becomes of such magnitude that a liter of fuel Premium type can be sold for up to 29.19 pesos, which forces them to squeeze their pockets extra to fill the tank of their cars or choose other means of transportation to their workplaces and homes.

PetroPerú announced this week the increase of 5% and 13% in the different qualities of fuel, a substantial increase as a result of the Russian invasion of Ukraine. This situation makes purchases of crude oil, inputs and finished products more expensive and puts the sustainability of supply in the South American nation in an emergency.

Similarly, in El Salvador fuel prices recorded new increases. This is the fourth continuous increase that fuels reflect so far in 2022 and the figure continues to approach $5.00, as experts have predicted.

The value of special gasoline suffered an increase in the central zone $4.59; in the western, $4.60 and in the eastern $4.63. In the case of regular gasoline, the increase is $0.21 and a gallon with a reference price of $4.43 in the central zone, $4.44 in the western zone and $4.47 in the eastern zone.

In Ecuador, experts pointed out that with the rise in the price of a barrel of oil, the value of a gallon of Super gasoline will exceed USD 4 in Ecuador as of March 12.

For the Dominican Republic, the situation has not been different, which demonstrates the global impact of the rise in crude oil.

This week premium gasoline reached RD$293.60 per gallon and regular RD$274.50 per gallon, reflecting an increase of RD$6.00 and RD$4.00 respectively, while optimal and regular diesel recorded an increase of RD$241.10 per gallon and RD$221.60 respectively. As for LPG and Natural Gas, they remained unchanged.

And it is that the Dominican government has redoubled its efforts to deal with these increases, allocating this week alone RD$615 billion pesos so as not to transfer the full impact of this crisis to the citizens.

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