Petrol set to rise as price of crude soars

Joan Collins OWNERS of service stations are concerned that petrol prices are set to hit the ceiling this week as distributors pass on the rise in oil prices which have reached a record of over 72 dollars a barrel, according to the President of the Service Station Owners Organisation, Jesus Salas. Petrol prices on the Balearics have already risen above one euro and look set to keep on rising. According to figures from the national Ministry of Industry, Tourism and Commerce, up to yesterday the lowest price for 95 octane unleaded petrol, which is the most popular grade for private cars, was more than one euro in all service stations in the Balearics. Only diesel (DERV), which is the most popular with professional drivers and growing in popularity with private drivers, is less than one euro, costing 0.969 euros at the moment. “Petrol prices follow oil prices and the price per barrel is at a record level. We only need two more rises and we will overtake the fuel prices which we had during the Iraq war”, said Salas. He attributed this big rise to the situation with Iran and the reaction of the rest of the oil producing countries. Salas said that fuel prices had not yet risen above the maximum seen during the Iraq war. During that time even the price of diesel rose above one euro per litre, although he considered that they will exceed this maximum after the next few price rises. Yesterday the President of the CAEB (the Balearic Confederation of Company Associations), Josep Oliver, described the rise of the price of crude oil to a historic record of 72.2 dollars a barrel as “very worrying” for the Balearic economy. “It would appear that the economy coped with the situation when crude oil was priced at 60 dollars a barrel”. “However, these new rises are very worrying for all companies, and above all for industry and airlines”, said Oliver. “On the subject of aviation and tourism we will not be too affected because we are a holiday destination very close to Europe”, he added. He also said that the rise in the price of crude oil had been cushioned a little by the euro-dollar exchange rate. “If crude oil continues to rise much more, sooner or later we will have to think of developing other forms of energy so that we will not be so dependent on solid fuels”, he concluded. Elsewhere, the National Federation of the Self Employed (ATA) yesterday demanded that the national Government propose to the European Union, with the agreement of all members, the creation of a professional fuel for industrial sectors, such as agriculture and transport. The President of the ATA, Lorenzo Amor, said that professionals in these sectors “cannot be continually subjected to the fluctuations of the price of crude oil” and complained that this situation “means that the self employed will be less competitive and therefore their profits will fall”. Amor predicted that the rise in prices will affect the Spanish economy to such an extent that “it will force the Government to revise its predictions for the overall economic performance for the foreseeable future”. Crude oil prices yesterday maintained the upward trend of the last few days with Brent crude closing at 72.51 dollars a barrel, while Texas crude was 71.35 dollars.