The cost of electricity increases
The rise in the cost of electricity also risks affecting the Italian four-wheeler world. In fact, in the coming weeks, petrol stations could be closed during the night. The hypothesis, more and more realistic, is linked to the now unsustainable cost of electricity to be used for the lighting of street distribution systems at night.The confirmation came from Paolo Castellana, vice president of Figisc (Italian Federation that protects the operators of fuel plants). Due to the high cost of electricity for lighting and the low revenues associated with nighttime refueling, it has become almost completely impossible for gas stations to continue with night service.
The difference in costs of management is very high. As pointed out by Castellana, in fact, in December 2020, an expense of 1,000 euros was recorded for 1000 kWh of electricity. Today, just over a year later, the same amount of electricity translates into an expense of 2,500 euros. The increase, according to the federation of fuel plant operators, cannot be passed on to the final consumer and, therefore, there is no way to compensate for this strong growth in costs.
if (jQuery ("# crm_srl -th_motorlabs_d_mh2_1 "). is (": visible ")) {console.log (" Edinet ADV adding zone: tag crm_srl-th_motorlabs_d_mh2_1 slot id: th_motorlabs_d_mh2 "); } Meanwhile, it should be noted that motorists also have to deal with significant problems. In particular, the cost of fuels is growing sharply, reaching an average of 1.831 euros per liter for petrol and 1.707 euros per liter for diesel with LPG for self-services, which stands at 0.819-0.834 euros. The energy crisis has also pushed up the cost of methane, now between 1.78 and 1.918 euros per kilo.
Energy prices could rise further because of OPEC failures, warns IEA
International Energy Agency: OPEC+, which includes allies such as Russia, has been increasing their supply in small increments in a bid to keep up with oil demand and decrease stockpiles from the height of the pandemic. Photo: Sergei Karpukhin/Reuters
The International Energy Agency (IEA) has warned that energy prices and volatility in the sector could rise further due to supply issues among the group of major producing nations.
In its latest monthly report on Friday it said failures to meet pledges, from members of the Organisation of the Petroleum Exporting Countries (OPEC) and their allies, has meant that oil prices have rocketed to their highest levels since 2014.
Benchmark crude prices (BZ=F) rose by more than 15% in January to cross the $90 (£66) per barrel threshold for the first time in more than seven years. Global oil stocks at multi-year lows and dwindling spare capacity have left the market with only a small cushion.
The group, OPEC+, which includes allies such as Russia, has been increasing their supply in small increments in a bid to keep up with oil demand and decrease stockpiles from the height of the pandemic.
Brent crude has climbed higher over the last month. Chart: Yahoo Finance UK
There were also signs that the shortfall was worsening, the IEA said, adding to the tightness in an already stretched market.
OECD industry oil inventories plunged by a hefty 60 mb in December, to stand 255 mb below the five-year average and at their lowest level in seven years. Over the past 12 months, industry stocks have declined by 355 mb despite the release of more than 50 mb of oil from government reserves over the same period.
“Further increases are expected in the coming months as new projects start up and US shale continues to respond to higher prices. That has led us to raise our forecast for US oil supply growth for 2022 to 1.2 mb/d.”
The Paris-based agency added that Saudi Arabia and the United Arab Emirates (UAE), the two oil producers with the most spare production capacity, could help ease volatile oil markets if they pumped more crude.
The move could help relieve dwindling global oil inventories that have helped push prices towards $100 a barrel recently — which has been one of the factors pushing up inflation.
Read more: Oil closes in on $100 a barrel as European storage sites hit by cyber attacks
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'If the persistent gap between OPEC+ output and its target levels continues, supply tensions will rise, increasing the likelihood of more volatility and upward pressure on prices,” the IEA said.
“But these risks, which have broad economic implications, could be reduced if producers in the Middle East with spare capacity were to compensate for those running out.”
OPEC+ has faced mounting pressure in recent months to hike supply thanks to stronger-than-expected demand. At their latest meeting last week, the group said they would maintain their planned increases in output of 400,000 barrels a day in March.
“Chronic underperformance by OPEC+ in meeting its output targets and rising geopolitical tensions have propelled oil prices higher,” the IEA report said.
It added that effective spare capacity could fall to 2.5 million barrels per day (bpd) by the end of the year, held up almost entirely by Saudi Arabia and, to a lesser extent, the UAE.