Why are fuel prices so high?


Going out to refuel your car now is almost like a horror movie, and it doesn\’t matter if you have a car with a gasoline or diesel engine. Their prices have skyrocketed almost astronomically recently, due to the discomfort of all drivers. Unfortunately, even those who do not own a car can not escape the consequences. Sellers also increase the cost of transporting goods from the manufacturer to the warehouse, and from the warehouse to the store, which, of course, will lead to an increase in prices. As a result, the price will rise significantly.  Of course, one can ask what is the cause of this sharp rise in oil prices. But in this case, the main culprit is very clear – it is the war between Russia and Ukraine. Specifically, the sanctions imposed on Russia by the European Union and other independent states are responsible. 1. Forget that Russia is one of the largest suppliers of oil and gas and operates many of the main pipelines on which Europe largely depends. And given the already mentioned sanctions, it is understandable that Russia has raised the price of oil and gas.

klasická čerpací stanice

Of course, the question is what we can do about it, or rather, what measures the government can take to mitigate this price increase. There are several options, but not all of them can be used without further results. 1 of them is fuel subsidies. Simply put, the gas station is sold in the original amount, and the difference is paid by the state. After all, this may seem ideal, so the impact on the general population is minimal. The question is where to get the money.

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Another option is the only price regulation, when the state will see if the seller does not increase disproportionately in growth price of fuel. This will make fuel more expensive, but we are sure that this is really the smallest possible increase. The advantage here is that this measure does not hit the state budget much. The downside is that the price is still high. But whatever course of action the government takes, they always keep in mind that they are trying to make things as easy as possible for their citizens, after all, this is the purpose of the whole process.