Brent falls below $90: cheaper petrol in sight
Brent has dropped to $76, but pump prices are not following suit. Taxes eat up the cut and fuel subsidies expire this month. Scepticism is growing.
English · Original discussion in Spanish · Published
Brent falls below $90: petrol isn't getting the message
Brent crude has broken through the $90-a-barrel floor and is now trading at around $76-77, according to this week's figures. The drop is steep and is fuelling the scepticism of independent analysts, who see an increasingly glaring disconnect between the price of oil and what people pay at the pump.
Why is Brent falling?
The war in Ukraine, the conflict in the Middle East, panic over inflation… all of that is still there. And yet the barrel has lost 15% in just a few weeks. Some point to a disguised overproduction crisis. Others say real demand is weakening more than official bodies admit. The curious thing is that Iran, with its financial 'capos' connected to London, keeps exporting while nobody lifts a finger. "No peace in Iran. I don't understand anything," one observer summed up.
Petrol: the double trap of taxes
While crude falls, petrol and diesel are holding out. Drivers know it: pump prices don't track Brent at the same pace. And now, with an eye on the 30th of this month, when fuel subsidies expire, VAT will return to 21% and the hydrocarbons duty will rise again. Some have already filled up with heating diesel at €0.98 a litre, taking advantage of the current floor, aware that what they save on crude they will pay in taxes.
The paradox is served: oil is getting cheaper, but your wallet won't fully notice. Fiscal policy makes sure to pocket the discount. And scepticism about the official narrative – which insisted inflation was unstoppable – grows with every barrel that falls.
Brent crude has broken through the $90-a-barrel floor and is now trading at around $76-77, according to this week's figures. The drop is steep and is fuelling the scepticism of independent analysts, who see an increasingly glaring disconnect between the price of oil and what people pay at the pump.
Why is Brent falling?
The war in Ukraine, the conflict in the Middle East, panic over inflation… all of that is still there. And yet the barrel has lost 15% in just a few weeks. Some point to a disguised overproduction crisis. Others say real demand is weakening more than official bodies admit. The curious thing is that Iran, with its financial 'capos' connected to London, keeps exporting while nobody lifts a finger. "No peace in Iran. I don't understand anything," one observer summed up.
Petrol: the double trap of taxes
While crude falls, petrol and diesel are holding out. Drivers know it: pump prices don't track Brent at the same pace. And now, with an eye on the 30th of this month, when fuel subsidies expire, VAT will return to 21% and the hydrocarbons duty will rise again. Some have already filled up with heating diesel at €0.98 a litre, taking advantage of the current floor, aware that what they save on crude they will pay in taxes.
The paradox is served: oil is getting cheaper, but your wallet won't fully notice. Fiscal policy makes sure to pocket the discount. And scepticism about the official narrative – which insisted inflation was unstoppable – grows with every barrel that falls.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (10 replies).
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