Orlen explained why diesel is more expensive than gasoline Business

Diesel is more questioned not only in Lithuania

The service stations of the gas station "Josica" of Vilnius and Kaunas are already more expensive for gasoline than 1 penny, Kvistiya – 2 cents, which is a rare case in the market. retail gasoline. In large service stations, such as Circle K, prices have already fallen.

Some drivers were surprised by the fact that gas stations and manufacturers use the same situation: diesel cars dominate in Lithuania and this fuel consumption is increasing every year. And gasoline sales are decreasing every year.

Supply company Orlen Lietuva explained why this happened. According to Adam Czyżevsky, chief economist at Mazeikiai's PKN ORLEN plant, fuel prices are affected by both oil and fuel markets and inadequate supply and demand. In other words, diesel on world markets is more complicated than gasoline, and this is reflected in Lithuania.

Need more diesel – it refines more oil

A.Czyzewski explains that the demand for diesel is also increasing due to the strengthening of IMO standards in the near future. In addition, the United States 60% The light shale oil produced is consumed for the production of gasoline. As a result, diesel demand is fueling the price of oil and encouraging oil extraction in the United States.

US refineries currently produce more gasoline than diesel. "The demand for gas in the United States has decreased and more and more, it is exported, mainly to the countries of the Atlantic," says the Polish economist. As a result, gas prices on the world market are falling faster than falling oil prices.

Until now, diesel prices have risen and have exceeded gasoline prices. "The price ratio has not changed due to the drop in oil prices and, to prepare the infrastructure, it will take time to ensure an adequate supply of oil for export", said the chief economist of the group.

Predicts lower prices

According to an economist and market leader in oil prices, prices for gasoline and diesel are expected to fall in the near future.

"Forecasts will result, for a variety of reasons, from the fact that the world market for oil and petroleum products is particularly unstable, and daily developments around the world and the changes they bring can have unpredictable effects on the final price. on any given day, "said A. Czyzewski.

As reported by Bloomberg, investors are worried about the excess supply of oil in the global market, which could be explained by a slight slowdown in demand for oil and gas. black gold. The price of oil at this limit is also due to the record highs in Saudi Arabia and the appeal of US President Donald Trump to a further reduction in the price of the black gold. The weekly oil price recession is already seventh, and in the summer, the price was $ 85 a barrel.