Fuel prices to drop over next two years

in News · 30-04-2020 01:00:00 · 2 Comments

The executive chairman of Partex, an oil company owned by the Gulbenkian Foundation until 2019 and later bought by the Thai PTT Exploration and Production, believes that fuel prices in Portugal will fall for at least the next two years .

“We will clearly have a reduction in fuel prices, because the barrel of Brent [from the North Sea and the reference for Europe] will end - in fact it is already - because it is affected”, António Costa e Silva said in an interview to Lusa.
The Portuguese have not yet begun to feel this drop in prices “deeply” at the pumps, but, according to the manager, in the next two or three weeks this will already start to happen.
The Portuguese market “depends a lot on the price of Brent, from Europe, and then on the prices of the various refined products. There are indications, in the last few days, that these prices are going down and may come down even further”, he explained.
Thus, “we will always have a delay of two to three weeks until it starts to be felt at the pumps [in Portugal]. But if we look at the last few days, there has already been a drop, both in the price of diesel and gasoline, and therefore these trends will probably be reflected more deeply in the coming weeks in the Portuguese market”, he reinforced.
The drop in prices, although difficult to predict, but “could reach six cents” per litre he admitted.
“The declines are difficult to estimate, but they can reach four or six cents [per litre], it depends on the volatility of the market and the possibility of having some stability”, he said.
As for the period over which it is estimated that the price reduction in Portugal will continue, Costa e Silva considered that “it may be significant”, because, with the paralysis of the economy and the global crisis, the economic recovery “will be extremely slow”.
Now, without a growing economy, there will not be “a sustained recovery in oil prices”, he stressed.
He concluded: “I predict that this year and next year we will have low fuel prices”.


I think he meant 60 cents. ;-)

By Ricardo from Madeira on 30-04-2020 02:02

"could reach six cents”...

Are you serious?! Six(6) cents, while oil is almost worthless now? Who are you kidding?!

By Fred Doe from Algarve on 30-04-2020 11:27
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