“We felt cheated.” Even gas station owners are freaking out about the sudden, meteoric rise in oil

The missiles fell and the energy markets soared. When the conflict officially began on February 28 between the US, Israel and Iran and its expansion through the Middle East, the energy markets responded to the new scenario and in more or less two weeks, the barrel of Brent has already risen by 50% according to EIA data. At gas stations, the price of fuel also rose overnight.

The rapid rise in fuel. Below these lines you can see how the average price of fuel in Spain has evolved according to the data extracted from the Ministry of Ecological Transition of the States and compiled by the Dieselogasoline website.

Thus, if we closed February with a price of €1,493/l for Unleaded 95 and €1,548/l for Diesel A+, March has been a relentless uphill climb for all fossil fuels. Today they mark €1,727/l and €1,935/l respectively. With this panorama and the figure of 2 euros/liter on the horizonthe first days already There were long lines at some service stations. before what was coming.

Evolution of fuel prices in Spain in March. Dieselogasolina.com

The perfect storm. With the blockade of the Strait of Hormuzthe place through which approximately 20% of the world’s production of crude oil and liquefied natural gas passes, confirmation that China turns off the tap of its exports to meet domestic demand, the slowdown in activity of some deposits and that large merchant companies are paralyzed or surrounding all of Africa to satisfy demand at the cost of a longer and more expensive route, it is clear that the scenario for buying oil looks bleak. In fact, not even the International Energy Agency release 400 million barrels of emergency reserves (the largest mobilization in history) was enough for the market to react.

Ultimately, that number equivalent about four days of world consumption or about 20 days of what passes through the Strait of Hormuz. And it could be worse: as the spokesman for the Khatam al-Anbiya headquarters of the Islamic Revolutionary Guard Corps explained: “They will not be able to artificially lower the price of oil. Prepare for oil to reach $200 per barrel,” picks up Al Jazeera. Instability, the reduction in supply and its use as a measure of pressure summarize the black picture.

But that gasoline is not that of war. Although the history of conflicts in the Middle East is an unequivocal precedent to glimpse the rise of fuel and everything, because in practice it has an impact on the logistics of the bulk of the activities: if the fruit store brings its delivery five times a week, those deliveries cost more. And if you travel 50 kilometers a day to get to work, it will also cost you more. Economy of the obvious. However, there is a harsh reality: that fuel that you are already paying at war prices was acquired previously.

We are paying prices for the future, those for replacement. And not just consumers: also gas stations. As Michel-Édouard Leclerc, president of the E. Leclerc supermarket chain and its gas stations, said, to public broadcaster Franceinfo: “We felt cheated, just like the drivers, by the almost automatic speed with which prices rose.” In his case, he also announced the reduction of 30 cents at the group’s gas stations in France thanks to negotiations with suppliers.

Who sets the price of fuel. In the Spanish state, prices have been free since 1998, as the CNMC explainsbut from here there are several actors that influence:

• The international market, based on the price of Brent oil or refined oil in the reference markets.
• The refinery or wholesale operator, which adds its operating and logistics margin until distribution.
• The gas station operator: if it is a flagship station such as Repsol or BP, the price is practically a matter for the parent company. If it is independent or belongs to a large surface (such as Plenoil or Leclerc), it has more room for fixation. Hence they are the cheapest.
• The State through taxesmore specifically the Special Tax on Hydrocarbons and VAT.

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Cover | Leclerc