ROME, Aug. 17 (Xinhua) -- Drivers in Italy were confronted with the highest gasoline prices in more than a year on Thursday, with high demand and a new surge in global petroleum prices driving the upward trend.
According to government data, the super-95 gasoline (the standard quality) cost 2.019 euros (2.198 U.S. dollars) per liter along the highways. The last time that prices were so high was in July 2022.
Prices varied slightly by region, and they were lower for other types of vehicle fuel, such as diesel, liquified petroleum gas, and methane. Also, prices along the highways tend to be the highest. On the whole, gasoline prices are a key factor in establishing overall prices in the fuel sector.
According to the Ministry of Environment and Energy Security, one liter of super-95 gasoline cost 1.867 euros (2.033 U.S. dollars) in July and 1.840 euros (2.011 U.S. dollars) in June. Its price reached an all-time high of 2.182 euros (2.370 U.S. dollars) per liter in March 2022, in the wake of the conflict between Russia and Ukraine that upset the global energy markets.
The conflict sent world petroleum prices from around 38 U.S. dollars per barrel in late 2021 to nearly 120 U.S. dollars per barrel in May and June 2022. However, prices had steadily declined since then until recent weeks.
Higher fuel prices were a key driver driving up inflation in Italy, Europe, and beyond. Inflation continued to rise even after fuel prices slipped lower because of the knock-on effect fuel has on costs for transportation, agricultural and industrial production. Inflation levels in the European Union and Italy peaked in late 2022 and have been gradually decreasing since then.
But energy prices are rising again. Crude oil prices are now above 80 U.S. dollars per barrel, up from a recent average price of 68 U.S. dollars per barrel.
In Italy, the increase has also been caused by the termination of a temporary reprieve on fuel-related tax, though the combined value-added and excise taxes on fuel still remain lower than levels from a year ago, according to ministry data.
Gasoline is a key component in the government's formula for calculating the national inflation rate. The recent increases in gasoline prices are not yet reflected in the country's inflation rate, which was 5.9 percent in July, down from 6.4 percent in June and far lower than its peak of 11.8 percent in October and November, according to the country's national statistics institute ISTAT.
Fuel prices are also a factor in levels of consumer confidence, which declined in July, according to ISTAT.
