The escalation in the price of crude oil worldwide, due to the conflict in Ukraine, which has led Brent crude to reach $100.04 per barrel today and WTI —Ecuadorian crude marker— at $95.5, entails a series of consequences regarding the price of fuels within the country.
Francisco Silva, Vice President of the Chamber of Petroleum Derivatives Distributors (Camddepe), He explained that today, indeed, after learning of the announcement of the military operation, the price of crude oil has skyrocketed, and that there is a possibility that the price will continue to climb depending on the evolution of the conflict.
Silva explains that for every 10 dollars that increases the price of oil, also increases the price of the gallon by about 25 cents. So, according to the price structure in the country, super gasoline prices will surely increase to above $4 per gallon. This if you take into account that the price of super is on average $3.78 per gallon and that, if it is increased by at least 25 more cents, it would reach $4.03.
Super gasoline, which is released and whose value, therefore, is governed by the international price of crude oil, has been increasing its price steadily in recent times. For December 12, 2021, the MSRP was $3.40; in January, it reached $3.52; and in February, $3.68. However, at various gas stations that price can be much higher. In this sense, Silva says that the average is $3.78 for February.
Thus, on March 12, which is when the Regulation and Control Agency determines the price of fuels that will govern for a month, the new increase can be seen. He explains that on March 12 the price will be set with respect to the behavior of the entire month of February.
On the other hand, for extra gasoline and ecopaís, as well as for diesel, whose price is frozen, the subsidy will increase. According to data from Petroecuador, in the past month, the subsidy diesel 2 was $0.91 per gallon; meanwhile, premium diesel received a subsidy of $0.89 per gallon. The extra gasoline had a subsidy of $0.33; and the ecopaís, $0.42 per gallon.
Silva explained that this whole situation worries his sector, since they must buy super gasoline at a much higher price, which implies a greater liquidity requirement. However, there are other types of decisions and measures that affect them, such as, for example, a series of withholdings that are made to them, the increase in the basic salary that is difficult for them to assume, and the low marketing margin that they have. In this sense, says Silva, these problems have been dealt with at technical tables, but there is still no solution.
Source: Eluniverso
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
