Few, if any of us, can accurately recall the price of a litre of petrol or diesel. Not helped by the fact it varies from petrol station to station.
So why do prices go up and down and can consumers cushion themselves against the vagaries of the industry?
Here’s a simple guide outlining what determines the price of fuel:
- Petrol and Diesel prices are particularly responsive to decisions about output made by OPEC, the Organization of Petroleum Exporting Countries which operates as a cartel.
- Like any product, the laws of supply and demand influence prices; and petrol and diesel prices are priced on international markets.
- Exchange rates have an impact. Petrol & Diesel is priced and traded in dollars so if there are movements in the exchange rate between the euro and the dollar, it will cause price fluctuations.
- Natural disasters disrupt production, and political unrest in an oil-producing juggernaut like the Middle East will cause pricing fluctuations.