Fuel prices hitting an eight year high

[Sithara007]

As long as governments keep on printing more and more money, prices will keep on going up as well. This is not just for fuel, but for everything else. Sure there is a big competition in some prices and that is why prices do not spike too much in small stuff, you may buy milk or bread or egg for similar prices but other stuff, big price stuff keep on going up way too much. Look at house prices, look at car prices, look at education prices, look at healthcare prices. These are all expensive stuff that got even worse. This is why I believe that we should not be focusing on just small items to determine inflation, it doesn't give the full picture.

This is something that most of us ignore. At least a part of the price rise related to the crude oil resulted from the massive increase in M1 monetary supply during 2020-21. Look at most of the other commodities, like wheat and coal. You can find a corresponding increase from them as well. And as far as I know, there is no significant change to the crude oil demand/supply pattern during the last 3-4 years. So the increase in prices has to come from somewhere else. And this is going to get worse in the near future.

[DrBeer]

The rising inflation has hit everything hard and the petrol price crisis is the main concern of every citizen across the globe and we could see some insane rise in petrol prices or say it has busted to the record high in most countries due to increase in crude oil barrels.
....

A very interesting and informative collection of data. And tell me, does it seem to you that not the indicator of the net price of gasoline, but, for example, the ratio of the cost of a liter / gallon of gasoline to the weighted average income of citizens of this country will be more weighted? Well, or even to the minimum subsistence level in the country? It seems to me that it will be a more accurate and correct indicator, since it will lead to a "common denominator" indicators in countries with, for example, large stocks, or low living standards, or low stocks and high incomes.

[Mauser]

Fuel prices together with grocery prices are the most direct way the consumers feel the rising inflation. We all see the prices at the gas station change each week. But its not only fuel prices that are at so high levels, its all type of energy prices. Economist say it was just a matter of time for energy prices to rise. This winter will be very interesting because it could get very cold and people will need more fuel and heating. The big problem I see in my country is that wages are not rising together with higher living costs. The big fuel companies and OPEC don't care about the average consumer, for them it's all about their bottomline. The higher prices could easily be offset by increasing production but for them it's about maximising profits. Unfortunately we don't have any choice, during winter there is no chance to take the bike or walk when it's freezing and raining outside. We are stuck with the prices at the gas station and have no alternative. Officially there is no fuel monopoly, but the prices at all the gas stations are pretty much the same.

[DrBeer]

Fuel prices together with grocery prices are the most direct way the consumers feel the rising inflation. We all see the prices at the gas station change each week. But its not only fuel prices that are at so high levels, its all type of energy prices. Economist say it was just a matter of time for energy prices to rise. This winter will be very interesting because it could get very cold and people will need more fuel and heating. The big problem I see in my country is that wages are not rising together with higher living costs. The big fuel companies and OPEC don't care about the average consumer, for them it's all about their bottomline. The higher prices could easily be offset by increasing production but for them it's about maximising profits. Unfortunately we don't have any choice, during winter there is no chance to take the bike or walk when it's freezing and raining outside. We are stuck with the prices at the gas station and have no alternative. Officially there is no fuel monopoly, but the prices at all the gas stations are pretty much the same.

I am still inclined to think that the index should be integral. The cost of goods and services show the "expenditure side", but we must compare this with the "revenue side". Using a simple example, what does 1 dollar per liter of gas mean for a Norwegian? And what does 1 dollar for a liter of gasoline mean to a resident of Ukraine? Of course, this is all with regular consumption. I answer:
1.in fact an imperceptible part of his income
2. A fairly noticeable part of income
Or, for example, gasoline for 1 cent in Venezuela is cheap, so everything is fine? But in the UAE, everything is bad, since they have gasoline as much as $ 2.5 per barrel! But the economic situation turns out to be absolutely opposite! 1 cent out of $ 5 income is much more expensive than $ 2.5 out of $ 5,000. It is necessary to compare the commensurate ...

[Wind_FURY]

Oh well i thought this problem is happening in my country only , since last year the fuel price has gone up about 40% in my country and it has resulted in increase in fare of all transports and every thing, and once i used to fill 3$ fuel in my bike and that lasts for days, but now in 3$ today it may last for only 2 days for me.

It’s everywhere. Wait for your government, by law, to increase the minimum monthly salary. That’s one of the very first signs that prices of basic goods in your country will never fall back to what they were during last year. That’s inflation.

[19Nov16]

Industrial needs with oil are very high, china is a fast growing economy they need 2x oil than the US needs and this makes prices skyrocket, i think this is a big problem because oil resources are not renewable so the world will be dark if not oil, alternative resources have not been able to fully replace oil because many countries do not support green energy policies.

[bosede1]

The price of fuel is not even has high as that of gas in my Country, you need to know that it has double its price this last quarter and is not a joke, many people are looking for other means because you can't depicts what price you will get it when next you want to.

[Kez1817]

The rising inflation has hit everything hard and the petrol price crisis is the main concern of every citizen across the globe and we could see some insane rise in petrol prices or say it has busted to the record high in most countries due to increase in crude oil barrels.

As long as governments keep on printing more and more money, prices will keep on going up as well. This is not just for fuel, but for everything else. Sure there is a big competition in some prices and that is why prices do not spike too much in small stuff, you may buy milk or bread or egg for similar prices but other stuff, big price stuff keep on going up way too much. Look at house prices, look at car prices, look at education prices, look at healthcare prices. These are all expensive stuff that got even worse. This is why I believe that we should not be focusing on just small items to determine inflation, it doesn't give the full picture.

Yeah even in our country fuel prices keep on increasing together with other goods in the market. Maybe this is still a caused of pandemic because it was a long time before the economy recovered. Sadly only fuel and other goods keep on increasing but the salary of employee still the same. Rising commodity prices make it even more difficult for people.

[justdimin]

I am still inclined to think that the index should be integral. The cost of goods and services show the "expenditure side", but we must compare this with the "revenue side". Using a simple example, what does 1 dollar per liter of gas mean for a Norwegian? And what does 1 dollar for a liter of gasoline mean to a resident of Ukraine? Of course, this is all with regular consumption. I answer:
1.in fact an imperceptible part of his income
2. A fairly noticeable part of income
Or, for example, gasoline for 1 cent in Venezuela is cheap, so everything is fine? But in the UAE, everything is bad, since they have gasoline as much as $ 2.5 per barrel! But the economic situation turns out to be absolutely opposite! 1 cent out of $ 5 income is much more expensive than $ 2.5 out of $ 5,000. It is necessary to compare the commensurate ...

My nation has something similar as well, the cost of filling the tank of your car is significantly lower than what could be considered for a German for example, it is probably nearly 30-40% cheaper right now. What does that mean? It means we are doing better? Or it is cheaper?

For this type of situation people usually talk about how many litres of gasoline could the minimum wage could buy. In that situation we are eliminating something serious, we are talking about purchasing power, and when you consider that a German could buy nearly 2.7x times more gasoline for their minimum wage than what our citizens could. This shows you that it is in fact cheaper for them, and that is a good calculation.

However that leaves one side to calculate, if you have 50%+ of your citizens work for minimum wage or even less illegally, whereas Germany has only 3% that also means that the calculation is even worse, people in Germany usually make a lot more, which means the difference is even higher.

[DrBeer]

My nation has something similar as well, the cost of filling the tank of your car is significantly lower than what could be considered for a German for example, it is probably nearly 30-40% cheaper right now. What does that mean? It means we are doing better? Or it is cheaper?

For this type of situation people usually talk about how many litres of gasoline could the minimum wage could buy. In that situation we are eliminating something serious, we are talking about purchasing power, and when you consider that a German could buy nearly 2.7x times more gasoline for their minimum wage than what our citizens could. This shows you that it is in fact cheaper for them, and that is a good calculation.

However that leaves one side to calculate, if you have 50%+ of your citizens work for minimum wage or even less illegally, whereas Germany has only 3% that also means that the calculation is even worse, people in Germany usually make a lot more, which means the difference is even higher.

Absolutely agree ! Therefore, I think that the indicator should be integral and take into account several factors, including the level of the minimum income and the income distribution of the citizens of the "measured country". One figure is not only not an indicator, but most likely an indicator that will lead in the wrong way and will eventually give an incorrectly formed opinion or assessment.

[The Sceptical Chymist]

At my local gas station, the price is $3.56/gallon and I haven't seen it that high in a long time. 

I'm replying to myself here, but I wanted to follow up on what I wrote a couple of weeks ago--gas prices in my area have actually gone down somewhat, because that same gas station now has a gallon at $3.38.  There's probably not much to read into that, since oil/gas prices fluctuate just like every other commodity, and I don't think there's a downward trend as of yet.

And hey, I also remember when gas was at or above $5/gallon here in the US back in 2004 or so (it was so long ago that I don't remember the exact year(s) gas was that high, but I'm pretty sure I'm in the ballpark).  When you compare where we're at now to back then...whew.

More of a problem is getting my hands on everyday supplies like pet food.  The supply chain issues are no joke, regardless of whatever's causing them.

[LUCKMCFLY]

Precisely an oil country such as Venezuela, which has production everywhere, has to import gasoline, for the simple fact that those who are operating with oil are not able to process their own gasoline, when at a time the best Gasoline in the world with the best octane was produced by Venezuela, now the gasoline they bring is Iranian, which means that Iran, due to this production, is obtaining one of its highest income due to its process,

I am very surprised by a peculiarity, that as time passes, they continue with the dependence on gasoline for most cars, they were talking about hydrogen, other means, but I think it is still not enough.

[Ultegra134]

At my local gas station, the price is $3.56/gallon and I haven't seen it that high in a long time. 

I'm replying to myself here, but I wanted to follow up on what I wrote a couple of weeks ago--gas prices in my area have actually gone down somewhat, because that same gas station now has a gallon at $3.38.  There's probably not much to read into that, since oil/gas prices fluctuate just like every other commodity, and I don't think there's a downward trend as of yet.

And hey, I also remember when gas was at or above $5/gallon here in the US back in 2004 or so (it was so long ago that I don't remember the exact year(s) gas was that high, but I'm pretty sure I'm in the ballpark).  When you compare where we're at now to back then...whew.

More of a problem is getting my hands on everyday supplies like pet food.  The supply chain issues are no joke, regardless of whatever's causing them.

Same here, petrol and diesel dropped the significant amount of €0.02! Astonishing to say the least, doesn't make much difference to be honest. However, I'm noticing a downtrend on Brent Oil the past one week, with the barrel now costing $78.40, compared to $82-$85 which was the usual for the time being. Let's shall wait and see if it drops any further.

[DrBeer]

Precisely an oil country such as Venezuela, which has production everywhere, has to import gasoline, for the simple fact that those who are operating with oil are not able to process their own gasoline, when at a time the best Gasoline in the world with the best octane was produced by Venezuela, now the gasoline they bring is Iranian, which means that Iran, due to this production, is obtaining one of its highest income due to its process,

I am very surprised by a peculiarity, that as time passes, they continue with the dependence on gasoline for most cars, they were talking about hydrogen, other means, but I think it is still not enough.

Venezuela's problem is not even in its president Maduro, the problem began to manifest itself even before him, he simply became a catalyst for the process. The problem of Venezuela is the huge dependence of the economy on the oil market. Oil provides 95% of export revenues, more than 50% of the state budget revenues and about 30% of GDP. Can you imagine what a powerful dependence on surges in oil prices? And any downward movement of oil really drives the whole country into poverty! Imagine - somewhere they just find a new field of cheap and affordable oil and the economy of an entire country collapses, and no one can save Venezuela ...

[Fortify]

Fuel prices have skyrocketed in the past few months, on a worldwide scale. Here in Greece, the average price per liter for 95 Unleaded petrol is €1.75, while for diesel it's approximately €1.45. A huge surge is also expected, in the soon-to-be launched season of heating gas oil, which is expected to start within the next few weeks, with a rumored price of at least €1.10/liter.

I've read that this spike in prices is triggered by an increase in price per barrel, due to oil companies worrying about the pandemic, while their production is limited compared to the higher demand. Have you heard anything relative? What's causing this surge in prices, could it be a one-off thing which lasts a couple of months at most?

What's the average cost of petrol/diesel in your country? Share your thoughts on what exactly is causing this crisis, which is also spiking electricity costs up, increasing the budget for the average household.

Sources:
https://www.bruegel.org/2021/09/is-europes-gas-and-electricity-price-surge-a-one-off/
https://www.bbc.com/news/business-58718148

What I find most crazy was the fact that fuel a year ago was NEGATIVE, as in - Oil companies ran out of places to store it and were paying people to take it off their hands. All that spare capacity was used up and now we're at a situation where supply is too low to meet demand, pushing prices towards all time highs. Covid has really shaken all sorts of supply chains up far beyond the direct effects of the disease, it's looking like it might take a few more years for everything to get back to what we used to call normal. It just goes to show, that for all the talk of transitioning away from fossil fuels, it is still a major driver of the world economy and will take many decades to fully replace. Lots of people might wish it gone but it will stubbornly stick around.

[YOSHIE]

What's the average cost of petrol/diesel in your country? Share your thoughts on what exactly is causing this crisis, which is also spiking electricity costs up, increasing the budget for the average household.

Indeed, at the end of 2021, fuel tends to increase by a few percent, which is triggered by many factors causing the increase in fuel prices.

In 2020 and in 2021 even though the price of fuel increases by a few percent, but it doesn't have a bad impact on the needs in my country, such as the 2020 Pertamax Turbo €0.6 per liter in 2021 to €0.8 per liter, that's for example.

Actually there are some active fuels in my country, of course there will be changes in 2021 for the fuels in my country.
As an example:
1. Diesel: €0.4/liter.
2. Non-Subsidized diesel: €0.69/liter.
3. Pertamax Turbo: €0.8/liter.
4. Pertamax: €0.56/liter.
5. Pertalite: €0.47/liter.
6. Pertamina Dex: €0.69/liter

For now the price of fuel in my country is still relatively cheap, even though the world price per barrel rises, we are still safe for now.

[Lubang Bawah]

Oil will always be an important issue in the world, various policies to be able to suppress oil prices are not effective because the use of oil continues to increase and cannot be controlled, many countries do not want to develop alternative energy because most oil companies are state-owned so it will be a loss if the state also develops alternative energy massively.

[Ultegra134]

What's the average cost of petrol/diesel in your country? Share your thoughts on what exactly is causing this crisis, which is also spiking electricity costs up, increasing the budget for the average household.

Indeed, at the end of 2021, fuel tends to increase by a few percent, which is triggered by many factors causing the increase in fuel prices.

In 2020 and in 2021 even though the price of fuel increases by a few percent, but it doesn't have a bad impact on the needs in my country, such as the 2020 Pertamax Turbo €0.6 per liter in 2021 to €0.8 per liter, that's for example.

Actually there are some active fuels in my country, of course there will be changes in 2021 for the fuels in my country.
As an example:
1. Diesel: €0.4/liter.
2. Non-Subsidized diesel: €0.69/liter.
3. Pertamax Turbo: €0.8/liter.
4. Pertamax: €0.56/liter.
5. Pertalite: €0.47/liter.
6. Pertamina Dex: €0.69/liter

For now the price of fuel in my country is still relatively cheap, even though the world price per barrel rises, we are still safe for now.

Where are you from, if you don't mind me asking? That's extremely cheap to be honest, however, we should also take into account the living wages and expenses of your country. Here, in Greece, the cost of electricity, fuel and groceries is way out of proportion for the average household. Everything is going up, except our wages/salaries.

[LUCKMCFLY]

Precisely an oil country such as Venezuela, which has production everywhere, has to import gasoline, for the simple fact that those who are operating with oil are not able to process their own gasoline, when at a time the best Gasoline in the world with the best octane was produced by Venezuela, now the gasoline they bring is Iranian, which means that Iran, due to this production, is obtaining one of its highest income due to its process,

I am very surprised by a peculiarity, that as time passes, they continue with the dependence on gasoline for most cars, they were talking about hydrogen, other means, but I think it is still not enough.

Venezuela's problem is not even in its president Maduro, the problem began to manifest itself even before him, he simply became a catalyst for the process. The problem of Venezuela is the huge dependence of the economy on the oil market. Oil provides 95% of export revenues, more than 50% of the state budget revenues and about 30% of GDP. Can you imagine what a powerful dependence on surges in oil prices? And any downward movement of oil really drives the whole country into poverty! Imagine - somewhere they just find a new field of cheap and affordable oil and the economy of an entire country collapses, and no one can save Venezuela ...

You are right, for now Venezuela has no salvation, is that I think that even if oil were to reach the powerful sum of $ 1k per barrel, it would be even poorer, because the government's thinking is to give everything away to Cuba, Nicaraguaa and all those Countries that share their political ideology, corruption is extreme, there is no way it can be solved, what people do is try to survive with a business that they can start, apart from the fact that services are very limited and every day lacks quality Like electricity, water, telephone, here what is being extracted is oil, but everything goes to China and Russia.

[DrBeer]

You are right, for now Venezuela has no salvation, is that I think that even if oil were to reach the powerful sum of $ 1k per barrel, it would be even poorer, because the government's thinking is to give everything away to Cuba, Nicaraguaa and all those Countries that share their political ideology, corruption is extreme, there is no way it can be solved, what people do is try to survive with a business that they can start, apart from the fact that services are very limited and every day lacks quality Like electricity, water, telephone, here what is being extracted is oil, but everything goes to China and Russia.

Well, if the government of the country, instead of taking real steps to get the economy out of the crisis, play some idiotic games in order to "take revenge" on someone. As practice shows, the result of such merrymaking leads to a sad result, and in this case - most likely to further destruction of the economy. Handing out a friendly pat on the shoulder, a key resource, is an absolutely idiotic idea. We must remember that those who "pat on the shoulder" historically always use them to their advantage, and as soon as Venezuela becomes uninteresting, they will immediately turn away from it and pretend that they do not know it.
But let me remind you once again - a stupid president, this is just a "catalyst for problems", but the problem itself is of a systemic nature, and it is called a resource-based economy ...