Oil price and final gas price in Italy – What’s missing in the equation?

A few days ago BRS Resources Ltd, an international oil and gas exploration and production company headquartered in Texas, promised to answer to a question I posted over the last Christmas holidays.

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Who can explain why, independently from oil prices, gas in Italy is always 1.8 €? Of course that “always” was rhetorical. I know that the price of gas is not always 1.8euros. On the other hand the relationship between crude oil prices and the final price at a gas station seemed to me not directly proportionate.

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For instance, you can see how the fluctuation of crude oil prices (in red) between August and October 2012 does not correspond to the fluctuations of the final price to consumers (in blue for Diesel and yellow for Super). On the other hand, while crude oil prices between mid October and mid November seem stable, final gas prices dropped.

In 2012, Italy was the country with the most expensive gas in the world, in an economy in recession, where jobs are fading away and fiscal pressure is the highest in Europe. Still, how come an essential tradable good like gas remains so high?

One thought on “Oil price and final gas price in Italy – What’s missing in the equation?

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