Fuel prices: will the rise continue in the coming weeks? – Free lunch

It is a substantial budget for many households: transport. Since December 2021, the prices of traditional fuels have experienced a further increase in their prices.

A historic peak

For the second week of 2022, the Ministry of Ecological Transition notes a diesel price of 1.62 euros per liter, 1.68 euros per liter for unleaded 95 E10. A spectacular increase which could well continue at the start of the year.

The current price of diesel had therefore never been so high in history. In October 2021, Jean Castex announced an inflation bonus to deal, in particular, with rising fuel prices. It is a safe bet that for many French people, this check will not be enough to stem the unalterable rise in energy prices.

Why such an increase?

The direct responsible is logically the price of so-called “Brent” oil, a crude fuel used to fix prices. Brent oil from the North Sea, the benchmark for Eastern Europe, has risen sharply since December 1st. In just 1 year, the price of the latter has taken almost 60%.

According to Hussein Sayed, analyst at Exinity, interviewed by West France, the crazy increase in recent weeks is explained by supply tensions in producing countries. The extreme cold has led to a drop in production, “in Libya, Nigeria, Angola, Ecuador and, more recently, in Canada.”

The strong economic recovery of recent months in Europe and around the world is boosting oil consumption. The demand for oil being stronger than the supply, the prices increase mechanically.

Towards new increases?

This is the most likely scenario. With the end of the pandemic beginning to emerge, demand will increase further in the months to come. Analysts predict continued inflation in the price of oil, which could exceed the bar of 100 dollars a barrel.

In one month, Brent oil experienced an increase of more than 21% and almost 1% in one week. This new increase will therefore automatically be reflected in fuel prices at the pump. We can therefore reasonably think that the next few weeks will see a continuation of the surge in bills at service stations, to the detriment of household purchasing power.