”The fact is that energy prices are rising. Yesterday morning, oil was 130 dollars, during the day it returned to 120, and at the end of the day it was 123 dollars and it is close to the historical price from 2008 when it was 147 dollars. Back then, prices at gas stations were slightly lower. It is now visible that they are around three BAM, somewhere a little less, somewhere a little more, which is really a lot, when we compare the prices at gas stations only a year ago, ” said former director of Bosnia and Herzegovina (BiH)-gas and energy expert, Almir Becarevic.
”There are not many scenarios, prolonging the conflict, that is, a possible blockade, introducing an embargo on Russian oil exports to Europe, it is logical that there will be a certain disturbance. The fact is that it is a little easier to find a replacement for oil, but in gas, it is much, much harder because Europe depends on up to 30 percent of oil imports from the Russian Federation, and gas imports are up to 45 percent,”Becarevic explained.
Becarevic reminds that the budgets of oil producers are stable when the price is over 80 dollars per barrel. Anything below that leads to problems in countries that export that energy source.
”What they are doing at the moment – they can, but they do not want to increase production, because there is space for that, without any problems. A crisis is being created in addition to the crisis in Ukraine, it may be created, so to speak, artificially, so I don’t know how much it suits everyone in the long run. In the short term, there is an effect for those who make money on it, and that is not disputable, but in all countries, no matter how rich Western countries, or anyone else, are, when you raise the price for citizens, it automatically affects household budgets. It does not suit any country because it has to solve social peace, and in the last six months, we have seen in all western countries that measures have been introduced that have never been present before, from abolishing excise taxes to reducing VAT, introducing vouchers for the socially vulnerable. In the long run, I don’t believe it suits anyone, but no one can say it won’thappen again.”
”Europe depends on natural gas, especially Germany, which is the leader of Europe, it depends entirely on Russian gas, so I do not expect any major turbulence in this segment. The fact is that it can happen because of the war, although we see that Gazprom, which is absurd, has increased the amount of gas through Ukraine – so you are at war with the country, and through the same country, you have increased the supply of natural gas from 50 million to 110 million cubic meters in the last 72 hours. So, you have increased over 100 percent. And, you have buyers for that natural gas, the whole of Europe takes that gas because they would not deliver it if that gas was not bought,” Becarevic reminded, noting that prices are what we should be worried about because increase of prices will go further.
The price of gas is related to the price of oil, and it cannot be ignored that the price of oil has risen from 60 to 120 dollars in the last year.
E.Dz.
Source: BHRT
