The embargo on Russian petroleum products will lead to higher fuel prices, due to lack of production capacity in Europe, the newspaper La Repubblica wrote on January 9.
The current restriction on the import of Russian oil by sea to Europe, in force since December 5, 2022, did not affect the market. This is due to the sufficient volume of raw materials.
The situation is different with the supply of processed raw materials. During the 20-25 years of the “green policy” Europe has curbed production, which was considered polluting. Investments in this area were not welcomed.
Previously, Russia supplied up to 3 million barrels of refined and partially refined raw materials to the European market every day. This included about 1 million barrels of fuel. After Russia, the most important suppliers to the EU were the United States, Turkey, Middle Eastern states and India.
The authors note that the availability of Russian products kept the price down on the market. The introduced embargo will lead to an increase in prices.
In Italy, after the abolition of government benefits, the price of a liter of diesel fuel exceeded € 2 per liter, gasoline prices are also approaching this mark. Rome has already ordered to identify companies speculating on fuel prices.
Source: Rossa Primavera News Agency