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Oil Above 110 Dollars, Fuel Up Again: Why, When the World Gets Cheaper, Are We the Last to Feel It?

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Oil Above 110 Dollars, Fuel Up Again: Why, When the World Gets Cheaper, Are We the Last to Feel It?

When oil rises on world markets, the pocket of the Macedonian driver feels it immediately. A barrel of Brent climbed above 110 dollars, US crude above 107 - a rise driven by tensions in the Middle East and market instability. And here, as a rule, that means only one thing: a hike at the pump.

New prices have been in effect since July 7. Eurosuper BS-95 costs 85.5 denars per liter, BS-98 is 87.5, and diesel 82.5 denars - an increase of 2.50 denars for diesel and one denar for the petrols. Reference prices worldwide rose significantly - petrols by over 2.5 percent, diesel by over 5 percent. The energy regulator says the price merely follows market dynamics.

The problem is that when oil falls, the cut here comes slowly and shyly - but when it rises, the hike arrives at once and in full. Added to that is the weakening of the denar against the dollar by around 1.5 percent, which further squeezes energy imports. So we pay twice - both a higher oil price and a weaker denar.

For a country without oil of its own, dependence on the world market is a reality that can't be avoided. But the way that dependence is passed on to the citizen - fast up, slow down - is a matter of policy, not geology. Every liter that gets more expensive also means costlier transport, costlier food, costlier everything. The question the driver asks at every pump stays the same: why, when the world gets cheaper, are we the last to feel it?