Diesel goes to the fourth consecutive week of gains and gasoline to the seventh
Fuel prices will rise again next week. Diesel, the most used fuel in Portugal, should become 2.5 cents more expensive and gasoline should rise by one cent from Monday, a sector source told ECO.
From Monday, when you go to fill up, you will have to pay 1,629 euros per liter of simple diesel and 1,696 euros per liter of simple 95 gasoline, taking into account the average values practiced at the pumps on Mondays, published by the Directorate- General Energy and Geology (DGEG). Diesel is on its way to the fourth consecutive week of gains and gasoline to the seventh.
These prices already take into account the discounts applied by gas stations and the review of temporary tax measures to help mitigate the increase in fuel prices. The tax reduction determined by the measures currently in force is 25 cents per liter of diesel and 26 cents per liter of gasoline.
Prices may also undergo changes to take into account the closing of Brent oil prices on Friday and the behavior of the foreign exchange market. But also because the final prices result from the average of the values charged by all gas stations. It is also worth remembering that the prices charged to the end consumer may vary depending on the gas station.
This week, the prices of diesel and gasoline rose by 2.5 and 2.3 cents respectively, slightly below market expectations, which predicted a rise of three cents in the case of diesel and 2.5 cents for gasoline.
The price of Brent, which serves as a reference for the European market, is rising this Friday (0.01%) to 78.69 dollars per barrel and everything points to a weekly drop of around 5%, fueled by fears regarding the growth in demand in China and the unfounded reports of a ceasefire between Israel and Hamas, despite the decision by OPEC+ to maintain its production policy unchanged. Only in March will it be decided whether to extend the voluntary cuts in oil production in force for the first quarter.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, have in place production cuts of 2.2 million barrels per day (bpd) throughout the first quarter.
“What has already become clear over the past year is that the reversal of these cuts will be gradual,” said UBS analyst Giovanni Staunovo, cited by Reuters, adding that the bank expects an extension until the second quarter.
Oil prices were also supported by the US Federal Reserve’s decision to maintain the benchmark interest rate and comments from Fed Chairman Jerome Powell saying that interest rates had peaked and would fall in the coming months. This is because lower interest rates would reduce financing costs for consumers, which would boost economic growth and thus demand for oil.