How long can gasoline and diesel continue to rise?
YE Madrid Wednesday 23 June 2021, 01:18  The liter of gasoline was paid in Spain last week at an average of 1.37 euros, according to data from the  Oil Bulletin of the European Union. It is  21.2% more than last year at this time. Fuel prices have recovered their pre-pandemic levels and have even exceeded them, since it is necessary to go back to October 2014 to find gasoline and diesel as expensive as those that are served now. The increase in fuel prices is explained  due to the increase in the price of a Brent barrel of oil, the benchmark in this area of the world. Last day 16 marked a maximum of 74.39 dollars, 45.8% more than on January 1, when it was paid at 51 dollars. Until the supply and demand of oil is balanced, something that may not happen until 2022, fuel prices will continue to be high, according to leading economic analysts. According to  OCU Consumer Organization Everything indicates that these rising prices will continue like this in the coming weeks, which will be felt in the pockets of consumers.  It is not possible to control the international price of crude oil, as he explained to El Correo  Kepa Loizaga, delegate of the OCU in the Basque Country. According to this organization, the extra cost that a driver who travels about 20,000 kilometers per year will assume compared to a year ago  It is about 280 euros if you use gasoline and 200 euros if it is diesel. As for gasoline, at the beginning of January filling a gasoline tank with 50 liters of capacity cost 60 euros, 8.50 euros less than last week. Something similar happens with diesel, since  last week it was served in the pumps at an average of 1.23 euros, 20 cents more expensive than a year ago, and filling the tank now costs 61.50 euros, seven euros more compared to January. According to Loizaga, it is not possible to control the international price of crude oil, since due to the well-known rocket and feather effect that occurs  when oil becomes more expensive and gasoline prices rise almost immediately, but in the opposite situation they go down more slowly, in the coming weeks we will see very fluctuating rates. In addition, approximately half of the price of fuel is taxes, so to control the ups and downs could be considered the convenience of reviewing them, as it is proposed to do with electricity, explains the OCU delegate in the Basque Country. About 55% of the price of a liter of 95 octane gasoline is set by taxes. In the case of diesel, this percentage reaches 50% of the price. To this must be added that oil is traded in dollars, but is sold in euros. Therefore, the stronger the European currency, the greater the difference between the price of crude oil and fuel. Thus, it is explained that a collapse in the price of crude oil only affects approximately 30% of the final cost of fuel. The lower the price of crude oil, the higher the percentage of taxes paid per liter. The oil companies affirm that this tax imposition is the main reason so that the price of fuel does not drop as much as oil. In addition to VAT, gasoline bears the Special Hydrocarbons Tax, which has three sections (state, regional and special). However, the Governments intentions move in a totally opposite direction. In the reform plan recently sent to  Brussels plans to review hydrocarbon bonuses used as fuel. The objective is to deepen the design of a green tax system that contributes to sustainability, protecting the environment as a tool to combat climate change. In other words, raise taxes on the most polluting energy sources, such as those derived from oil. Another factor that could indirectly influence the price of fuel is the  National Fund for the Sustainability of the Electricity System (FNSSE), which assumes the costs associated with the specific remuneration scheme for renewables, cogeneration and waste (Recore). A fund that aims to reduce the electricity bill but which can indirectly increase the fuel bill. The reason is that the cost of this tool -about 7,000 million euros a year- is largely assumed by companies  marketers of gas and petroleum products. Thus, according to the National Markets and Competition Commission (CNMC), these companies could transfer at least part of that cost to the final price paid by consumers. The superregulators calculations speak of an extra cost of between four and six cents per liter in 2025 compared to current prices.