Service station sector do not understand the new rise in fuel prices. | Majorca Daily Bulletin reporter

The price of fuel has risen again in the Balearics.

The president of the Association of Service Stations of the Balearics, Joan Mayans, has said that 95 petrol is costing on average of 1.819 euros a litre and diesel 2.050, without applying the discount of 0.20 euros corresponding to the rebate introduced by the Government.

In principle, the rebate will remain in place until 31 December, although it could be extended.

Mayans explained that the cost of fuel began to rise on October 5, when the countries of the Organisation of Petroleum Exporting Countries (OPEC) announced a reduction in production of two million barrels of oil per day.

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However, he pointed out that during the last week prices have remained stable but when asked about the evolution of the prices, he said it was impossible to know.

Luis García Langa, director of Corredordefondos.com, said that “this rise in fuel prices makes no sense, approaching historic highs, when oil is varying very strongly. We saw it at 120 dollars a barrel and now it is moving at around 90 euros, approaching the highs”. However, he acknowledged that there are two factors influencing this rise in price. One is the fall of the euro against the dollar. “It is true that oil is bought in dollars, but it is far from compensating for the rise in fuel prices”, he pointed out.

He also mentioned that OPEC has agreed to reduce production, as “it has seen how much the price has fallen and has wanted to raise it; but even so, it has had relatively little impact because demand is falling sharply. Fewer container ships are moving from China, fewer planes, etc.”.

In his opinion, “with the price of oil much cheaper than in February-March, the rise that is taking place makes no sense”. For this reason, he predicts that “fuel prices should not continue to rise, because the decline in global oil demand will continue.