Energy Minister announces when fuel prices at pump could decrease

The decline in international crude oil quotations will lead to lower fuel prices in our country, but this will be felt at the pump “in a week or two” if the trend continues. Minister of Energy Dorin Junghietu made the statement today in the context of international developments in energy resource prices determined by the ceasefire announced in the Middle East.

The official stressed that if the crude oil price remains below 100 dollars, then within one or two weeks citizens will feel this decrease at the pump.

“If the crude oil price holds – and this is a rough, preliminary analysis – if the price of crude remains below 100 dollars, possibly in a week or two this decrease should also be felt at the pump, because refineries are still processing the expensive crude that they purchased. We were seeing 110–115 dollars on the exchange, but the real price at which crude reached the refinery was approximately 140–150 dollars per barrel. That is why I say that if we observe a decline and if this crude oil quotation remains under one hundred dollars, possibly in a week or two consumers should also feel it at the pump,” said Junghietu.

At the same time, the official emphasized that this ceasefire must be approached “with a dose of caution”.

“This ceasefire still has to be treated with a dose of caution, because yes, those two weeks were granted, but there was also an important element to which we must pay attention. Iran’s Ministry of Foreign Affairs mentioned two important things. It said that possible transits through the Strait of Hormuz must be approved by Iran’s army and also carried out within the limits of the available technical capacities. That is why we say that it must be assessed with caution,” said the Energy Minister.

According to the official, international markets reacted practically immediately to the ceasefire decision, and the oil price fell below one hundred dollars, but this does not mean that crude reaches processors, the refineries, at the same price.

“International markets reacted practically immediately. We noticed that drop in the Brent price and in the oil price below one hundred dollars, but that does not mean that crude reaches processors, the refineries, at this price. There are transport costs, logistics costs,” Junghietu said.

Today’s trading session opened with a sharp decline in Brent oil quotations, which are currently trading at around 94 USD per barrel, registering a decrease of about 14%. The decline follows last night’s announcement regarding the cessation of hostilities in the Persian Gulf region for a period of two weeks, as well as Iran’s acceptance to reopen traffic through the Strait of Hormuz.

The National Energy Regulatory Agency (ANRE) announced that refined petroleum products have not yet felt the effects of these developments, given that the London Stock Exchange was already closed at the time the ceasefire information appeared.

Thus, according to ANRE, today’s quotations included in the calculation of the maximum price for gasoline and diesel for tomorrow remain high, being influenced by the levels recorded in the last trading sessions, as well as by the Easter holiday period in Europe.