Not only is there still no sign of easing in the oil markets, prices are even threatening to rise further. The situation is currently “extremely dynamic”, as Hedwig Doloszeski, representative of the petroleum industry association, explains. The conflict in Ukraine is not the only reason for this, China is currently also making a major contribution to the higher prices.
At the start of the Russian war of aggression in Ukraine, fuel prices briefly soared above two euros per litre, but the price of diesel and petrol in this country recently stabilized at just over 1.80 euros per litre.
However, this still quite high price seems short-lived and due to the political situation there are likely to be increases again, as Doloszeski explained in the Ö1 “Mittagsjournal” on Monday.
China becomes the price driver
In particular, the EU’s oil embargo, which is apparently becoming increasingly likely – at the moment only Hungary, the Czech Republic and Slovakia are blocking a corresponding agreement – could further heat up the price situation. “The situation is constantly changing,” says Doloszeski. But not only the situation in Ukraine is responsible for the currently high prices, but also for the current huge demand in China.
This was already noticeable on Monday morning, Doloszeski explains – she justifies this with the end of the corona measures in the most densely populated country in the world. As a result, full production in China would finally be possible again, which would increase the need for oil again.
Is there a diesel bottleneck?
At the moment, however, the question is not only whether prices are rising, but also whether there is still enough oil coming to Austria. Although the domestic OMV does not buy oil from Russia, about 39 percent of crude oil volumes come from Kazakhstan. From there, the oil must be transported via a Russian pipeline to a Russian port, from where it is eventually loaded onto a ship.
Another problem is that Austria imports a large part of its diesel. 59 percent of the diesel consumed comes from abroad, 60 percent from Germany, the rest from Italy, Slovakia and Slovenia, as Doloszeski explained – these countries, in turn, need oil from Russia to produce diesel.
Trend points to higher prices
The expert is sure that it is possible to gradually replace Russia’s oil stocks to ensure security of supply, but that would require not only new suppliers, “but also completely new logistics” – all of which would further increase costs.
Stop tank tourism in Hungary
There is not exactly good news for those who want to compensate for the high prices with fuel stops abroad. Hungary, for example, has set a state-subsidized standard price for premium petrol and diesel. As the ÖAMTC reports, the price at gas stations for foreign license plates automatically changes to a higher value.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
