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Sunday, October 13, 2024

Fuel prices are surprising. But changes are on the horizon. How much is petrol?

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On Thursday, September 19, Pb95 petrol cost an average of PLN 6.04 per liter, and Pb98 petrol – PLN 6.82/l. Diesel was PLN 6.05 per liter, and drivers paid PLN 2.86 per liter for autogas. “In several provinces, we have prices for Pb95 unleaded petrol and diesel oil at an average level below PLN 6/l, and these are the provinces most affected by the flood” – Reflex analysts write.

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Fuel prices are dropping. Is this the end of the declines?

Retail prices for petrol and diesel are falling by an average of 8-10 groszy per liter. These fuels are currently the cheapest since the outbreak of the war in Ukraine. Only autogas has gone up in price (an average of 3 groszy/l). “While prices for petrol and diesel have fallen by about 40-44 groszy/l since mid-July, autogas has gone up by 17 groszy/l during that time,” the company said in a statement.

However, analysts point out that next week may be the last week when fuel price drops will be observed at stations. The reason for this is the stabilization of prices on the wholesale market. “However, if price drops return to the wholesale market, the drops at stations will continue in October. Either way, there is a chance that at the end of September the average price level of Pb95 petrol and diesel will drop below PLN 6/l,” experts emphasize.

Oil prices are rising

Prices for November series of Brent (European) crude oil contracts have risen to around $75 per barrel. This makes Brent crude the most expensive since September 3. On a weekly basis, Brent crude oil has risen by around $4 per barrel. In turn, prices for Russian Urals FOB Rotterdam crude oil have returned to around $65 per barrel.

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The FOMC (Polish Monetary Policy Council) decision to cut interest rates by 50 points to 4.75-5% levels is a support for oil prices – comment Reflex analysts. They note that the market is still concerned about the weakening pace of growth in oil consumption. In the first two weeks of September, American fuel demand averaged 19.6 million barrels per day and was 1.35 million barrels per day lower than in the same period of 2023 (-6.4%).



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