The truth about the price of diesel: 47% of the increase is due to the explosion of the refining margins of the oil companies!
The current period is marked by a historical phenomenon: the tax-free price of diesel is rising much faster than that of gasoline to such an extent that, despite its fiscal advantage, diesel now costs almost as much as the super 95. This trend is explained by the phenomenal growth in the refining margin achieved specifically on diesel (1).
UFC-Que Choisir has calculated that, on a liter of diesel sold, the refining margin in May represents 15,7 cents. It stood at 6,4 cents in January 2008, 6,0 cents in 2007 and 2,5 cents in 1998. The increase in the refining margin alone accounts for almost half (47%) of the increase in the price of diesel since January.
This margin, which measures the refiner's remuneration for its costs and profits, was therefore multiplied by 2,4 in 4 months and by more than 6 in ten years! Conversely, the refining margin on petrol remains in its usual levels of 2 to 4 cents per liter.
This phenomenon is independent of the rise in the price of a barrel. It is explained by the tension which exists on the European market of the refining of diesel and which is maintained by oil companies.
On the one hand, demand for diesel is experiencing relative growth because the French and Europeans favor this type of engine. On the other hand, the oil companies have under-invested in refining capacities, particularly for the category of middle distillates which concerns diesel. In the end, supply did not adapt to demand, the market is very tense and the price is soaring.
For UFC-Que Choisir, oil companies bear heavy responsibility for raising diesel prices. By not investing in refining, they have created a rationing mechanism that explodes their profit in this segment and that inflates the price for consumers. The prospects are not very attractive since the investments to come relate mainly to upgrading to standards and not to the creation of new capacity.
The UFC-Que Choisir asks the government that during the French presidency of the European Union, the question be asked of a revival, if necessary binding, of investments in European refining.
Finally, it goes without saying that the excessive profits made on the refining of diesel only further justify the relevance of an exceptional contribution from the oil companies.
(1): This margin is the difference between the price of a barrel of brent and the price of diesel on the Rotterdam market.
Source: http://www.quechoisir.org
