Diesel drivers will pay less at the pump than petrol drivers. Gasoline is still more expensive than diesel. How much have pump prices changed in Romania?
Gasoline is more expensive now than diesel
Gasoline continues to be more expensive than diesel. Wednesday, May 8, 2024, at the Petrom station in Bucharest, on Dr. Herescu Petre street no. 2A, Sector 5, the most convenient standard gasoline option is 7.28 lei/liter.
In the rest of the capital’s stations, standard gasoline costs between 7.30 lei/liter and 7.50 lei/liter. For those interested in premium gasoline, prices vary between 7.79 lei and 8.14 lei.
Standard diesel now costs 7.27 lei/liter. Last Wednesday, for example, it cost 7.29 lei/liter. The maximum price for standard diesel in Bucharest was reduced to 7.42 lei/liter.
At the same time, the price for premium diesel is between 7.65 lei/liter and 7.92 lei/liter, according to Peco Online.
Gasoline demand growth will slow this year
This year, global gasoline demand is forecast to drop significantly, possibly by half, causing refiner profits to shrink in the latter part of the year. This trend is the consequence of the adoption of electric vehicles in China and the US, as well as a return to normal consumption after the increase recorded in 2023, when the restrictions imposed by COVID-19 were lifted.
The projection for gasoline demand growth this year is the weakest since 2020, with an increase of about 340,000 barrels per day (bpd) estimated, to a total of 26.5 million barrels per day. This figure is down from the 700,000 barrels per day increase recorded the previous year.
“The degree of adoption of electric vehicles has increased in the US and China. For this year, Chinese demand will increase by only 10,000 bpd, due to higher uptake of electric vehicles,” explained Woodmac financial analyst Sushant Gupta.
“Consultancy firm Rystad Energy forecasts global gasoline demand at about 26 million bpd in 2024, up about 300,000 bpd from growth of about 700,000 bpd in 2023, fueled by the post-pandemic consumption boom,” the analyst added finance Mukesh Sahdev.
China and the US will use less and less gasoline
China is fast approaching the peak of transportation fuel demand, while the US has already passed that threshold. China has dominated global gasoline consumption in the past, but is now expected to account for more than half of all electric vehicle sales this year, according to the International Energy Agency (IEA).
China’s gasoline consumption is forecast to grow by about 1.3 percent to 165.1 million metric tons this year, according to estimates by a research arm of China National Petroleum Corp (CNPC).
The research team at Sinopec, China’s largest refining group, expects gasoline demand to rise 1.7 percent to 182 million tons this year. Lower prices stimulate demand. The proportion of electric vehicles sold this year is expected to reach 45% in China, about 25% in Europe and over 11% in the US.
In the U.S., gasoline consumption has fallen to about 376 million gallons per day in 2023, according to data from the U.S. Energy Information Administration.
“Demand in 2024 is expected to be constant, analysts said. As a result, US refining margins are expected to remain under pressure after the summer peak,” said financial analysts Woodmac and Rystad.
