The pandemic was not over, and the partial recovery of economic activities and frequent car trips led to an explosion in gasoline and diesel prices. Obviously, everything starts with the price of oil. The downside is that, apparently, the price increases are just beginning.
According to an analysis by BCG – Boston Consulting Group, we should prepare for one of the largest oil price increases from the last few years. Due to the unpredictability of the pandemic, however, the explosion in fuel prices could be more painful than ever for end customers, even if it will take less time.
Apparently, the first signs have already started to be seen in the third quarter of this year, but the most painful impact on the pocket of Romanians follows in the first months of 2022. Overall, if the estimates prove to be correct, we expect a boom between 12 and 18 months.
Why the price of oil will rise and it will be felt at the pump, in petrol and diesel
According to the Boston Constulting Group’s analysis of The Last Oil Price Boom May Be in Sight, what is happening now is a supercycle of price increases very well defined. Massively influenced by the pandemic, it would have a chance to end only when the medical crisis will no longer make its effects felt in every corner of the world.
If you want to see the full side of the glass, the almost uncontrolled price increases we will face for gasoline and diesel could accelerate the transition from fossil fuels to low-carbon solutions, respectively hybrid or electric cars.
“This oil price boom could accelerate the transition to a more sustainable global economy, as oil companies will have more funds that could be allocated to carbon reduction projects,” said Zsofia Beck, Managing Director and Partner of Boston Consulting Group (BCG). “As the oil market system becomes more flexible and both supply and demand are more resilient than in the past, this oil boom could easily be the last in the world we will ever experience,” he added. she.
In the end, more money will go into oil first, we will pay more for gasoline and diesel, but over time, we may have something to gain.