A barrel of oil now costs the same as in 2014. But a liter of diesel costs 49 cents more

Last time oil was $115, like now, a liter of diesel cost 49 cents less. Why this difference? Largely because of taxes

Each barrel of oil currently costs around 115 dollars, or the equivalent of 105 euros. The rise in prices is directly influenced by the invasion of Ukraine and the role played by Russia in the fuel market.

We have to go back to June 2014 to find a barrel of oil at the same price, without taking into account the impact of exchange rates and inflation. That month, to refuel, each liter of diesel cost 1.41 euros. From this Monday, for the same amount, you will still have to pay 49 cents – or 1.9 euros per litre.

Different elements enter into this value, including taxes. In direct comparison, taking into account the calculations of CNN Portugal based on the proportions presented by Apetro, an association that represents oil companies, in 2014 the raw material represented 59 cents per litre. Next week it will weigh another 13 cents.

António Comprido, general secretary of Apetro, explains that there are different factors that explain the evolution of this component, when the value in dollars of a barrel of oil is the same at the start: the exchange rate effect, because the euro is now worth less than the dollar, and the demand and price dynamics of diesel as a refined product, which have evolved at a faster pace than the crude from which it originates.

But taxes also weigh more heavily on the bill. Eight years ago, they weighed 47% of the final price. Today, 49%. From next week, according to calculations by CNN Portugal, for every liter of diesel placed in the tank, 93 cents will go to taxes. This will be 27 cents more per liter than in 2014.

Apetro had already sketched a similar scenario in January, when the barrel of oil was at 85 dollars, attributing the fault to the budgetary component. “Now, the consequences will be more or less the same, but amplified by the conflict in Ukraine”, summarizes António Comprido.

The petrol station margin is included in a heading defined by Apetro as “Storage, distribution and marketing costs” which, compared to data from eight years ago, will cost less next week, although it does not represent a single penny on the invoice. The other element to take into account is the incorporation of biodiesel.

Next week, each liter of diesel will cost 14 cents more than it does now. Already the liter of gasoline will rise by eight cents, to 1.88 euros.

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