Regional energy inflation reaches 8.33% as diesel catches petrol
October prices for both fuels reached US$1.41 per litre, their highest level of the year, according to OLADE.
Energy costs in Latin America and the Caribbean rose at an annual rate of 8.33% in August, marking a twelve-month peak, the Latin American Energy Organization (OLADE) reported. Fuel prices faced further pressure during September and October, with diesel becoming as expensive as petrol for the first time in October.
Diesel’s regional average climbed to US$1.31 per litre in August, a 2.5% increase. Petrol recorded a smaller rise of 0.6%, reaching US$1.38 per litre. Both cost US$1.41 per litre in October. Since February, diesel has gained 26%, while petrol has increased 18%; OLADE said diesel could become the more expensive fuel in the coming weeks.
The energy inflation reading topped June’s 8.03%, the previous peak. Overall regional inflation reached 4.43% in August, up from July’s 4.17%. OLADE linked the acceleration to hostilities resuming between Iran and the United States in July following a fragile June ceasefire. Its findings, published by the Energy Report website, draw on member countries’ central banks and statistics institutes.
Average WTI crude prices were US$83.90 per barrel in August, followed by US$97.31 in September and around US$98.29 in October. OLADE said rising crude costs feed into fuel prices quickly, but falling costs reach consumers later or incompletely. It cited inventories, retailer margins, taxes, subsidies and local price-stabilization arrangements.
