From Wednesday motorists filling up their tank with diesel are paying 14 cents more than the day before. The maximum price is now 1.92 euros per litre. That is the highest level in 2.5 years. The price of petrol rises today Thursday.
‘Due to the conflict in the Middle East, the price of the underlying commodity, namely crude oil, has risen sharply,’ says Filip Van den Abeele, a Flemish engineer specialising in pipelines.
‘A barrel of crude oil costs 15 per cent more than a week ago, and we will start to notice this at the pump.’ Although petrol is also used as fuel, its price is not rising as quickly. ‘It is mainly a question of supply and demand.’
The economy ministry has announced rises to the maximum price of petrol: a litre of 95 (E10) petrol could cost up to 1.677 euros, while the maximum price for 98 (E5) petrol has risen to 1.74 euros per litre. For both types, this is the highest price since the end of November.
Why did diesel become more expensive than petrol first? ‘On the supply side, refineries in Europe produce much more petrol than diesel. We are dependent on imports for diesel, and those imports are now under pressure. That is driving up the price.’
‘Demand for diesel is strong. This is mainly driven by freight traffic, and it is difficult for lorry drivers to work from home. Shelves need to be stocked, factories need to be supplied, so demand for diesel remains high. This is also pushing up the price.’
Moreover, converting crude oil into modern, ‘clean’ diesel is a much more difficult and expensive process than refining petrol.
‘If the conflict in the Middle East continues for a longer period of time, the price of a barrel of crude oil could rise by another 10 to 20 per cent in the coming weeks or months,’ says Van den Abeele. ‘And I expect petrol to become more expensive as well.’