The price of gasoline has fallen below 40 K/l, diesel is also on sale, despite the low motoring season. Russia is burning more oil, not weakening; The Putin regime spent trillions on it this year

The traditional increase in demand for fuel related to the start of the motoring season is not yet sufficient to lead to an increase in the prices of gasoline and diesel. Both the two basic types of fuel are thus discounted. After less than a month, the price of gasoline hovered below the psychological threshold of 40 K/l. Over the past seven days, gasoline has become cheaper by 21 hals per liter to 39.98 K/l. Diesel became cheaper to drive, by 34 hal per liter to 38.27 K/l. Diesel is thus the cheapest for the same period since mid-summer. Its discount is thus related to the end of the winter heating season, which traditionally leads to a decrease in demand for heating oil.

The same reasons for the current drop in fuel prices are the drop in oil prices on world markets and the strengthening of the koruna against the dollar, in which oil is traded. This will be reflected in the drop in wholesale fuel prices on the commodity exchange in Rotterdam.

Over the past two weeks, Brent crude oil has fallen by less than five percent, while the five crowns have fallen by more than one percent against the dollar. In five to seven days, these pressures are reflected in the overall drop in fuel prices. Gasoline should become cheaper by roughly 40 hals per liter, diesel by 50 cents. Another discounted fuel can then be expected in the second half of May.

Of course, if, for example, the situation at the Nearest Entrance were to become dramatically complicated, the fuel prices would quickly increase during the month of May. The ground operation in the Rafah area in the south of the Gaza Strip, which Israel launched this week on Tuesday night, does not, however, disturb the oil traders. The price of oil does not respond to it. The oil traders now perceive the strong pressure exerted on Israel by the United States so that the situation does not escalate accordingly, and thus perceive the very possibility of peace between Israel and Hamas.

The price of oil, however, is not increasing because Russia consumed more oil in April, which would not have corresponded to the limits agreed upon by the OPEC cartel and its allies in the fight with Russia. moles in tb are supposed to prevent the sudden drop in oil prices. The OPEC cartel and its allies have given a date to be filled on June 1st, Goldman Sachs bank predicts that the moles in tb will last until the second half of the summer year.

The regime of Russian President Vladimir Putin will reversely increase the sale of oil and natural gas this year, despite the sanctions. The Russian budget this year is expected to increase by roughly 20 percent in oil and gas revenues, which is a total of 2.9 trillion crowns, according to Bloomberg. A decrease of roughly twenty percent is equivalent to some 500 billion crowns.

The sharp increase in the income of the Russian budget from oil and gas may be due to these key reasons.

First, to Russia, that the terrorist regime of Hamsa, which they elected in Gaza, dealt a bloody blow to Israel last year. As a result, a short-term tension is created, which increases the world oil and gas prices, thus also the income of the Kremlin.

Dude, the Kremlin can bypass the sanctions by means of the unofficial, formation of the tanker fleet in Russian services. The existence of this fleet makes it possible to minimize the sanctioned discount on the export of Russian oil. For example, in April of this year, Russia was able to sell its Urals oil to India for $75 per barrel, i.e. $15 above the ceiling set by the sanctions.

For now, the Kremlin is still paying taxes on domestic energy companies, including Gazprom.

Luk Kovanda, Ph.D.

Chief Economist, Trinity Bank