The price of unleaded gasoline could flirt with €2 per liter in the coming days if Brent crude continues its upward surge, currently reaching €110 per barrel, confirming the worst-case scenarios of the market regarding an escalation of the Middle East crisis.
International oil markets are in a state of high nervousness, with significant volatility and rising concerns about supply. Increases in refined products are expected to hit the pump very quickly.
A “Painful” Week at the Pump
According to market estimates, unleaded gasoline is expected to rise by up to €0.40 per liter and diesel by up to €0.60 per liter by Tuesday–Wednesday. If current prices hold in the coming hours, the price of unleaded is expected to shoot up to €2 per liter from Friday and almost certainly over the weekend.
Already today, the average gasoline price exceeds €1.80 per liter, with diesel following a similar path above €1.75, while heating oil surpasses €1.40 per liter. These price levels recall the period of the energy crisis, especially for heating oil and diesel. The price rally is driven by obstacles to navigation in the Strait of Hormuz and the decision of Gulf states to reduce production, as they cannot store additional fuel.
Energy Costs on the Eurogroup Agenda
At the same time, Eurozone finance ministers are seeking ways to address the energy uncertainty caused by developments in the Middle East during today’s Eurogroup meeting in Brussels. European finance ministers are expected to prepare the ground so that any decisions will ultimately be taken by EU leaders at the March 19–20 European Council summit.
“We have placed the impact of the geopolitical crisis on energy costs at the top of the agenda, as rising energy prices may create new inflationary pressures,” said Minister of National Economy and Finance and Eurogroup President Kyriakos Pierrakakis to Proto Thema.
A Window Through Reserves
Meanwhile, international discussions are intensifying regarding coordinated interventions in the oil market, which domestic fuel market officials believe could provide a window for easing prices.
According to a report in the Financial Times, G7 finance ministers will discuss the possibility of a coordinated release of oil from strategic reserves, in cooperation with the International Energy Agency (IEA), in an emergency teleconference convened due to the strong market turmoil following the Gulf conflict.
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