Rising Diesel Prices: Will Fuel Prices Increase Again, as at the Start of the Ukraine War? Response and Analysis

2023-09-12 04:00:00

For the first time in almost a year, the price of diesel rose above the symbolic bar of 2 euros per liter this Tuesday. A new increase which raises the question: will fuel prices increase once more, as at the start of the war in Ukraine? Response elements.

Refueling your vehicle is sometimes like emptying your wallet. We held out our microphone to road users. Even at gas stations that offer the best prices, discontent is noticeable. “Too expensive, unacceptable“, reacts a biker. “It becomes a great luxury“, another witness tells us.

Here are the official prices for this Tuesday:

Essence 95: 1,875 €/litre Diesel: 2,027 €/litre

Producing countries reduce supply

This increase is explained by the recent decision of the main crude oil producing countries, Russia and Saudi Arabia. They chose to reduce supply to increase prices. “They believe that the price that was set in June and May was insufficient to ensure their economic prosperity.“, explains Olivier Neirynck, representative of the Federation of Fuel and Fuel Traders.

No government action in sight

For many Belgians, doing without a car or motorbike is not an option. The government might reduce fuel taxes (currently 90 cents per liter)… but that does not seem to be on the agenda. “The government has done a lot of things in the past. Last year, he sharply reduced taxes on gasoline and diesel to reduce household bills, but it is becoming difficult to continue doing this kind of thing because public finances are under great pressure.“, indicates Charlotte De Montpelier, economist at ING.

In this economically and politically tense context, none of our interlocutors dares to make a prediction on the evolution of prices.

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