@Heliograph Fertilizers ? Also limited supply and increase in demand because alternative have gotten more expensive ?
(The impact of the Hormuz strait closure is far more that just oil and gas).
@Heliograph Fertilizers ? Also limited supply and increase in demand because alternative have gotten more expensive ?
(The impact of the Hormuz strait closure is far more that just oil and gas).
@Heliograph Homegrown grains still need fertilizers, https://www.science.org/content/blog-post/nitrogen-ammonia-and-strait-hormuz
Now the way the fuel seller adjust their price is far from perfect, so a brutal correction can make sense.
Itβs also possible they are greedy.
Is this fuel compatible with some fossil fuels ? Because if the fossil fuel prices rise, the demande for this one rises, and the demand justifies increasing the price.
@Heliograph So, two weeks ago, the fascist idiot in chief attacked Iran , overnight, resulting in a closure of the straight through with a large amount of the global oil production goes through, along with a large amount of the fertiliser stock, (and helium production).
Also, the Houthis recently said that they would join the party and try to close the other strait, the one into the Red Sea (and Suez), for added disruption.
And it is now dawning on the markets that there is no end in sight to this.
Oil and Gas prices have gone up quite a bit, which eventually propagated to consumer prices.
Demand for E10 increases as a result.
Facing a higher demand, and serious risk to their grain production (you know fertilisers), the brewer will increase their price.
Now the fuel stations might not be tracking super closely this, but as their supply runs out faster than they expect and need to re-supply, the price is higher, and they suddenly figure out they have to raise prices not to make a loss.
It is also possible they noticed E10 was cutting into their normal fuel sales and just raised it out of greed. (Which is something government authorities should be looking into).
But the brewers have very good reasons to raise their prices, because the demand is higher (so they can), and their business is one with significant risks, so you take your profit when you can, to survive the lean years.