Why will the conflict in the Middle East cause petrol prices to skyrocket in Monaco?
Petrol prices are likely to rise by several pence per litre due to the situation in the Middle East © Pexels - Julia Avamotive
The conflict in Iran and the blockade of the Strait of Hormuz are causing oil prices to soar, with repercussions expected in the Principality in the coming days.
The American and Israeli strikes launched against Iran since Saturday 1 March are disrupting energy markets. In Monaco, as across the French Riviera, motorists can expect a significant increase in prices at the pump in the coming days.
As reported by TVMonaco in a recent report, the blockade of the Strait of Hormuz, the 55 km stretch of sea separating the Persian Gulf from the Arabian Sea, is a major concern. Iran has decided to close this strategic passage, through which 20% of the world’s oil production transits. ‘Every day, two giant tankers carrying 2 million barrels remain docked,’ explains an expert interviewed by TVMonaco, referring to the security risks and prohibitive cost of marine insurance.
The price of a barrel of oil is rising sharply
The price of a barrel of Brent crude, the benchmark in Europe, jumped 13% on Monday morning to over $80, Franceinfo recently reported. This increase of several dollars translates into several pence more per litre at the pump, an effect that will be noticeable in about two weeks. In France, according to figures from Roole Data on 4 March, SP95 was already averaging €1.817 per litre and diesel €1.818, a marked increase compared to the previous week.
The Principality, whose fuel taxation is identical to that of France under Franco-Monegasque agreements, will automatically suffer the same repercussions.
The 22 oil-producing countries of OPEC+ have decided to increase their production quotas by more than 200,000 barrels per day starting in April. ‘Europe, for its part, has announced that it has the necessary reserves to avert the risk of shortages,’ according to the TVMonaco report. But if the price per barrel were to exceed $100, the increase could reach an additional 20 cents per litre, a scenario reminiscent of the price surge at the start of the war in Ukraine in 2022.