Bioethanol, Iran tension lift gasoline prices by four cents per liter

Motorists, in recent days, have faced the prospect of gasoline price hikes of as much as three to four cents per liter, compared to December 31 levels, escalating tension in the Middle East following the assassination of Iranian military commander Qasem Soleimani in a US drone attack ordered by President Donald Trump and the event’s impact on the international oil market being a key factor.

Another – less publicized and possibly more important – factor also leading to fuel price rises concerns an EU law requiring greater use of bioethanol, produced from a renewable source. Over the past year, a new EU law for cleaner energy has obligated refineries to include biofuels in their fuel mix.

As a result, the percentage of bioethanol included in conventional gasoline mixes has increased as of January 1, increasing gasoline production costs.

Subsequently, the price of gasoline at local refineries has risen from 1,173.59 euros per cubic meter on December 31 to 1,198.59 euros in prices registered January 1 and 2. This represents an overnight price increase of 25 euros per cubic meter or 2.5 cents per liter. The price rise will begin taking effect at petrol stations today, the end of the extended festive season in Greece.

The rising concerns in the Middle East combined with the cleaner auto fuel initiative will result in a retail price increase of approximately four cents per liter.

Worse still, a retaliatory attack by Iran on Saudi facilities, or an effort by Tehran to block the Strait of Hormuz, a corridor through which 20 percent of global oil is transported, would prompt far sharper price hikes. The latter scenario would lift oil prices to over 150 dollars a barrel, according to a report by research company Capital Economics.

 

 

RES installation licenses end to shorten processing by 6 months

A plan to scrap RES project installation licenses, included in a development-focused multi-bill presented last night for public consultation, promises to reduce the overall processing time for renewable energy investments by six months.

This revision will positively impact thousands of mid-scale RES investments in the wind and solar energy domains as well as geothermal, biofuel, biogas and biomass projects, industry experts explained to energypress.

The move is seen as a first step by the government towards simplifying laws for the renewable energy sector, as it has promised, and shortening the time needed for project maturity from seven years, as is the case in Greece at present, to two years, the European benchmark.

The decision to end the need for installation licenses will accelerate procedures for various RES project categories, including wind energy projects below 60 MW with line connections up to 20km; solar energy projects with capacities of at least 2 MW; geothermal projects under 5 MW; biofuel stations under 10 MW; biogas stations under 3 MW; and biomass power stations under 10 MW.