No sign of petrol prices coming down below one euro a litre

THERE was no sign that petrol and diesel prices were on the wane in the Balearics yesterday, with three gasoline stations charging over one euro a litre. Petrol “95” and unleaded “98” have maintained their high price levels this week, verging on the record tariffs registered in September last year. Meanwhile “A” grade petrol is selling at over one euro a litre at stations located in Palma, Llubi and on Ibiza. The recent price hikes are attributable to a surge in the cost of a barrel of crude oil which has hit the market over the last few weeks, reaching new record levels. The Association of Balearic gasoline stations has said that inevitably, the volatility of the world oil market will have knock-on effects for vehicle owners, particularly with the onset of summer and a sharp rise in demand during the holiday season. Reports released earlier this week from the central government ministry of Tourism, Industry and Commerce show that the average price of petrol “95” in the Balearics has reached 1'087 euros, compared to 1'072 euros where it stood a week ago, and eminently higher than the 0.95 euros which vehicle drivers were paying at the start of May in 2005. The Balearics continues to be more expensive than the mainland of Spain in terms of petrol costs. The absolute minimum current price on the Islands for petrol “95” stands at 1'075 euros a litre while there are still some places on the Peninsula where it can be purchaed for 0.949. In the case of petrol “98”, the average price in the Balearics has risen to 1.197 euros a litre, higher than the 1.182 it cost only a week ago.