Record-breaking gasoline and diesel, what does the shock increase in prices depend on? Cingolani: “Colossal scam” – News – Chicago Italy

The pandemic and climate crises have caused the cost of fuel to soar, a race to the top worsened by the war between Russia and Ukraine with petrol and diesel at an all-time high: over 2 euros per liter. Reason why the hauliers had announced Friday one national strike starting from March 14, however, stopped by the strike guarantee commission not having complied with the minimum notice requirements. Combined transport, however, goes straight ahead announcing the suspension of services.

But what is behind these increases? The Ukrainian crisis is only one of the causes of the increase in prices, linked above all to the trend of other factors which consequently can be directly or indirectly influenced byUkrainian invasion of Russia, one of the world’s largest energy producers. For the Minister of Ecological Transition Roberto Cingolani they are “a colossal scam resulting from an unspeakable speculation”. It is as true for oil as it is for gas, which is now out of control.

Energy, gas, petrol and diesel: never so high

The prices of fossil fuels and raw materials continue to rise, driven by the tensions on the oil market caused by the Ukrainian crisis. And for consumers they turn into dear bills It is in the expensive fuels of petrol and diesel. In addition to this, there is also inflation which is accelerating relentlessly, with a peak that has not been recorded since 1996 (+ 5.7% on an annual basis) and which certainly does not help the expense of the Italians and the growth of the economy.

However, the reasons for the high price do not lie in the imminent supply difficulties (being stable at this time) but in the eventuality anticipated by the market that could occur in the future. And the fear that Russia could cut off gas supplies drives up the cost of blue gold and, consequently, that of all industrial processes, creating a vicious circle that is difficult to break.

Oil prices have often risen in recent years, but we have never seen this fuel price shock. Compared to 2008, i oil prices they are even lower with crude oil at $ 111.5 per barrel on the Brent list (against 147.5) and $ 108.60 (against 147.21) on the WTI index. But, according to data from the Ministry of Ecological Transition, in the middle of the financial crisis the cost of petrol was 1.47 and diesel was 1.45 euros, today instead they run towards 2.5 euros per liter. So why do we have such high fuel prices today?

Why are petrol and diesel prices rising?

These increases are actually also the result of other factors such as the increase in the price of energy raw materials, the (unfavorable) euro dollar exchange rate and the excise duty on fuel and VAT. Only on the latter can the Italian government intervene with the awareness that – sterilizing VAT on fuels and reducing the weight of excise duties – would mean burdening this year’s budget.

Like any product, petrol also sees its production as the result of various processes such as processing, refining, storage, transport and distribution of the finished product. These activities reflect the dizzying increase in all energy raw materials.

The second point to emphasize is the weight of the exchange euro Dollar (in area 1.09). A euro of 2022 is not equivalent to a euro of 2008 when the exchange rate was favorable and the final price in Europe was below the threshold of 100 euros per barrel (equal to 97 euros), while it has been exceeded in recent days. According to Istat data, it has revalued by 22.45% in 14 years.

Then there is a third point: theVAT to 22% and the excise duty historically very high in Italy. According to the survey released by the Ministry of Ecological Transition relating to February 28, the weight of the combination of VAT and excise duties on fuels is 57% of the final cost of petrol and 53.5% of the total price of diesel.

Cingolani: “We need a ceiling for the price of gas”

“We are in the presence of a colossal scam that comes from the nervousness of the market”, underlined Cingolani on the “unjustified” increase in the price of fuel. The market has raised prices in an “unreasonable” way and “businesses and families” are paying. To stop this speculative spiral, according to the minister, a European price ceiling must be set.

“Anyone who exports gas cannot reckon without Europe: we need a ceiling for the price of gas, an attractive cost not to sink the market”, for example we can discuss around a figure of 80 euro megawatt / hour that it is already double what we paid a year ago ”, added the Minister of Energy Transition in an interview with Sky Tg24.

Our dependence on gas from abroad cannot be resolved with the opening of new nuclear power plants because it is “too late” but “we must accelerate renewable sources”, urged Cingolani. “Italy is paying for not having diversified energy production” while our EU comrades “have not stopped like us on gas and a few renewables”. And then he points out the way to take: “diversify and quickly recover lost ground”. But then “a drastic measure” will also be needed at the European level, concluded the minister explaining that Europe is working on Repower Mea package that includes several measures: from extra profits to various fiscal measures.

Video: Petrol, how much excise duties weigh. (Mediaset)

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