Because diesel costs more than petrol, the price of diesel exceeds 2 euros

Historically in Italy diesel has always cost less than petrol, but with the latest increases as a direct consequence of the war in Ukraine and the embargoes on Russia, the price of diesel has now exceeded that of petrol. This is why and to what this historic event is due for the Italian state.

In the last few days, as a result of the war currently underway in Ukraine and the embargo against Russia, an anomalous case occurred in Italy: diesel costs more than petrol. An absolute first since, due to the excise duties imposed more on petrol (equal to 0.728 euros per liter) than on diesel (0.617 euros per liter), in Italy, diesel has always cost less than petrol. There energy crisis in our country, therefore, it continues to worsen and inevitably has repercussions on fuel prices which, after exceeding the 2 euro per liter threshold, continues to rise inexorably.

Because the price of diesel has gone up

First let’s try to understand because the price of diesel is going up as well as that of gasoline. Two i main factors which are contributing to the rise in fuel costs: in fact, these increases are affected by quotations of petroleum products in the Mediterranean which in recent days, especially by virtue of the announcement ofembargo by the United States and the United Kingdom on energy products from the Russia, have undergone substantial increases; and the devaluation of the Euro against the Dollar which, with the price per barrel of oil set in dollars, makes the raw material for the production of fuels much more expensive for the Eurozone countries (including Italy).

Because the price of diesel is higher than that of petrol

Let’s now try to understand because today in Italy diesel costs more than petrol. Contrary to what happened in the past this time, as a consequence of the embargoes against Russia for the war in Ukraine, the increase in the price of Brent crude oil (which exceeded $ 130 per barrel), has had a major impact on diesel causing an increase of more than € 0.10 per liter.

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At this point one wonders why in recent times the price of diesel has risen more than that of petrol? The answer is to be found in the fact that, in Italy and abroad, the economic recovery after the Covid-19 pandemic was driven by the freight transport sector, for which, in the vast majority of cases, diesel-fueled vehicles are used. This spawned a increased demand for diesel compared to petrol and therefore, as the supply of oil falls internationally due to the war in Ukraine and embargoes on Russia, to increase the most is the product for which there is a greater demand.

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About David Martin

David Martin is the lead editor for Spark Chronicles. David has been working as a freelance journalist.

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