Energy expert explains price differences of petroleum derivatives and the volume of government subsidies

89.5 piasters global price of kerosene and 45 piasters subsidy difference per liter

5.5 dinars subsidy difference on a liquefied gas cylinder

Global price fluctuations reflect on the costs of petroleum derivatives locally

Oil and energy expert Hashem Akl confirmed that the prices of petroleum derivatives in the local market are witnessing a noticeable disparity compared to global prices, in light of the difference between derivative costs in international markets and locally approved prices, noting that the government has so far borne approximately 260 million dinars within the framework of subsidizing fuel prices and alleviating living burdens.

In an analytical reading of the reality of petroleum derivative prices, Akl explained that the global price of 90-octane gasoline is about 1.17 dinars per liter, while the local price is about 12 piasters lower, whereas the local price of 95-octane gasoline is affected by global price movements within the approved fuel pricing mechanism.

Regarding diesel, he pointed out that the global price is about 1.035 dinars per liter, with a difference between the global and local prices estimated at about 13.5 piasters, while the global price of kerosene is about 89.5 piasters per liter, with the subsidy difference reaching about 45 piasters per liter, aimed at reducing heating costs and living burdens on families, especially during the winter season.

He added that the liquefied gas cylinder entails a subsidy difference of about 5.5 dinars per cylinder, according to the figures he provided.

Akl said that the price of Brent crude maintained a high price ranging between 102-106 dollars since the beginning of the current month, which puts pressure on the prices of petroleum derivatives, in addition to a decline in global refining capacity by approximately 10% as a result of the disruption of 30%-40% of Russian oil refineries, the decline in refined exports from Arabian Gulf ports, and the cessation of China's exports of refined products, which led to their prices rising to unprecedented figures in almost most countries of the world.

Akl concluded by emphasizing that the disparity between global and local prices for petroleum derivatives is closely linked to the movement of international markets and supply costs, in addition to the local pricing mechanism, stressing the importance of considering global changes when setting prices to ensure the desired balance between energy costs and living burdens on citizens.