Finally. These fuel prices are coming down!
Will they go up again?
No one has a crystal ball, but, in the short term, prices will go down a little bit more. Like what they were before the invasion of Ukraine.
It was an extremely painful situation to thousands of companies in the US and Mexico. The tremendous increase of fuel prices a few weeks after the invasion of Ukraine. Unprecedented hike of 30% on our fuel prices overnight. Many categories of the transportation sector came to a halt, while other ones, went to bare operating methods and reduced costs anywhere they could.
Governments all over the world were helping their local chapters with government grants, loans, and many cities (all over the world) applied reduced fuel tax rates.
Now, as many of us are experiencing, the OIL prices have been on a downtrend, and we are currently (OCTOBER 2022) back to where we were before the invasion of Ukraine.
Two main reasons:
- The European Union (this is a team of 27 European countries. “Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.” ) and the United States are working together to increase Non-Russian Oil Supplies. To provoke a substantial reduction in the profits that Russia’s was making due to their oil exports.
- The overall global economy is losing strength, and according to The Organization for Economic Cooperation and Development (OECD), the outlook is also week for the first quarter of 2023. However, do not get totally discouraged, here in the States the US Economy shows promising projections of maintenance and slight growth. Let us hope for a faster turn on events between Russia and Ukraine in a way that stops the bleedings and begins the healing. The world is paying for the cost of this war.
Please check out these two articles which were my source for a full description of my information:
Thank you, Joaquin Vespignani from the University of Tasmania, as well as thank you World Economic Forum: