The government's efforts to reduce fuel prices remain fruitless. The measure of exceptional discount on simple unleaded petrol and diesel, which recently Kyriakos Mitsotakis announced From the step of the House, he was unable to offer even partial relief to households as international circumstances maintain the final price prohibitive for the average budget.
The unleaded (95 Oct.) and diesel drive are moving fully to break the two-euro barrier on average
The discount that began to apply from Tuesday, July 14, and is estimated to have already passed on the prices purchased by the stations in most parts of the country, became... smoke. The Greek Gasoline Sales Federation reported that on the first day of application the actual reduction in refinery prices was 8,68 minutes for petrol and only 1.61 minutes for diesel, as part of the discount was absorbed by the valuations.
Eyes on the Middle East
When the international price of Brent or refined products rises vertically, this is passed almost immediately into the domestic market. The new round of hostilities in the Middle East that maintains the limited oil flows from the Straits of Hormuz sustains the climate of uncertainty and increases prices.
Brent closed Friday at $88.10 a barrel, marking a daily rise of 4.59%. The American slow WTI closed at $82.49. Within a week both international indicators were strengthened by about 16%, recording their largest weekly rise since April and the highest levels since mid-June.
The ninth consecutive night of American attacks on IranSince the conflict between the two countries rekindled this month, it has undermined the fragile negotiations on ceasefire.
Fuel: Close to two euros the average price in unleaded
In Greece the average price of simple unleaded now moves slightly below 2 euros per litre, while in several island and remote areas it has already exceeded this limit. The oil is moving up.
According to the Liquid Fuel Price Observatory, the average price (18/07) of the unleaded 95 octane was 1,974 euros and the average price of the diesel drive of 1,927 euros. In Attica the unleaded 95 octane moved at 1,950 euros and the diesel drive at 1,917 euros. Similar prices are observed in the prefecture of Thessaloniki.
Over 2 euros the unleaded (95 Oct.) in Grevena, Dodecanese, Eurtania, Zakynthos, Heraklion Crete, Corfu, Kefalonia, Lasithi, Lesvos, Lefkada, Rethymno, Samos, Fokida. Over two euros the diesel drive in Eurytania, Cyclades and Dodecanese.
Next and then
The price path over the next few days, in the middle of summer, will depend mainly on the duration of the Middle East conflicts, the safety of navigation in the Straits of Hormuz and the development of international oil prices. If there is no de-escalation, the unleaded is going to break the two-euro barrier on average, with even higher prices in the islands and tourist areas.
According to fuel market players, the big price problem, apart from market disruption internationally, is taxation. In Greece the high tax burden is essentially a structural problem of the market.
The energy map changes
Meanwhile, as the Straits of Hormuz remain extremely precarious after the new conflicts, Iraq is forced to seek alternative export routes.
According to reports by Bloomberg thousands of tankers carry massive oil and oil through Syria and Jordan, creating a new energy corridor that changes the balance in the region. According to Vortexa's data, only in June were around 720,000 tonnes of Iraqi oil transported through Syrian ports, which corresponds to 28% of the total exports of the region and makes Syria the largest regional hub of the product.
Please note that the solution of thousands of trucks cannot completely replace maritime transport. As Bloomberg explains a single tanker can carry about 300,000 barrels, while a large super tanker reaches even 700,000 barrels.
