Weekly SmartPills #36

CHRISTMAS FLIGHT: GASOLINE PRICE DROPS TO €1.80 PER LITER

Fuel Prices Drop: Gasoline Falls Below €1.80 per Liter

Good news for those traveling by car during the Immaculate Conception holiday: gasoline prices are finally dropping. Staffetta Quotidiana reports that the average price is now around €1.80 per liter — a breath of fresh air after a period of price hikes. But what can drivers expect when filling up? In addition to gasoline, diesel prices are also declining. At self-service stations, gasoline is priced at €1.798 per liter, while at independent "white label" pumps, the price drops slightly to €1.796 per liter. As for diesel, self-service costs €1.773 per liter, while white label stations offer it at €1.768 per liter. A welcome relief for drivers, considering the recent volatility in fuel prices.

A Predicted Trend: Analysis and Confirmation

Staffetta Quotidiana’s forecasts have proven accurate: the decline in fuel prices is now a reality. The analysis, based on recent weekly trends, had anticipated a drop in the national average price of gasoline, now below the €1.80 per liter threshold when using self-service. It’s good news for those already on the road or planning to travel in the coming days.

How Is the Price of Gasoline Determined?

But how is the price of gasoline calculated? A key factor is the Platts quotation, which reflects the value of the raw material on the international market. This indicator, based on physical trades in a specific area, helps determine the actual cost of refined products. Added to this is the gross margin — the difference between the pre-tax retail price and the raw material cost — which covers expenses and provides earnings for those in the supply chain. It's worth noting that only this component, which represents about 10% of the pump price, can be influenced by the operator. Industry associations stress the importance of clarifying this structure to avoid misunderstandings regarding government measures. Carlo Rienzi, president of consumer group Codacons, commented that government efforts to mandate average price displays at fuel stations have created confusion. However, it's essential to recognize that the current price drop is primarily driven by international market quotations, offering a moment of relief for motorists. Nevertheless, the volatility of the fuel market suggests that sudden changes may still occur, especially in response to international geopolitical developments.