Diesel price broke record after record. Diesel tomorrow will cost 1.68 euros per liter max. An increase of 37 percent compared to March of last year, when the Corona pandemic began. Our money expert Paul D’Hoore explains why. “OPEC+, the group of oil-exporting countries, does not want to pump more barrels to maximize the return on scarce oil.”
Paul Dehor explains that the phenomenon of rising diesel prices is based on the same basic principle as was the case with rising natural gas prices. “Demand is growing exponentially, supply is not following, so prices are rising.” With regard to diesel, the position of the OPEC + countries, the alliance of 23 oil-producing countries, also plays a role. Last year, when demand was lower, OPEC+ decided to pump ten million barrels per day. If the situation improves again, the oil countries will start pumping again. He adds that they did the latter only on a limited scale. They added half again, but that’s still five million barrels less than it was before the pandemic.
It is clear that with such price increases as the current one under high international pressure, more oil will be pumped again, but OPEC + refuses to do so, claiming that “there is a sacred fear of a fourth wave and then a lot of oil in the “market” The expert calls this an “excuse.” “The truth is, of course, that they want to maximize the return on scarce oil.” Or: they create an artificial scarcity to drive up crude oil prices.
According to eons, this situation will continue for a while. “Just as with natural gas prices, we will not see a decrease in the coming weeks. Instead, it will take a few months. But for how long, no one knows today.”
D’Hoore explains that about two-thirds of the high diesel price we pay at the pump goes to the government. The production fee is a good 40 percent. This is a fixed amount.” But we also have to pay a value-added tax of 21 percent and this amount increases proportionally to the increase in the price of a liter.”
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