"I think the price is too high, because it means that it affects the price of fuel at the pump and is not at a level that is good for the world energy system", he said, in an interview with Lusa.
Driven by the combination of the strong increase in demand due to the recovery of economic activity and only slight increases in production by the members of OPEC (Organization of Petroleum Exporting Countries), the price of a barrel of Brent accumulated this year a gain of 58.78%, trading close to $82, after October 8, surpassing the $80 threshold for the first time since 2014.
Andy Brown, who replaced Carlos Gomes da Silva as Galp's CEO in February this year, stressed that the rise in the price of crude oil has to be read in the context of the energy transition.
"It's a reminder, it's a reminder that this is a transition, it's not just pressing [a] button, we have to make sure there's supply to meet demand," he said.
"Today people drive cars with internal combustion engines, they get on planes that use fossil fuels, and we can't just turn that off, we have to make a transition," he said.
Asked how he sees the Portuguese Government's option of reacting to rising prices by limiting margins in fuel sales, Brown recalled that we live in a global market of 'commodities'.
"Governments have to understand that we need to keep oil and gas flowing while we decarbonise, so we have to be able to learn to do both at the same time," he said.
He added that for governments, "taxation is an important part of how they earn revenue, and Portugal has a high tax burden on fuel margins, with 60% of the cost of a litre of fuel being taxed," he said.
"It is up to the government to define fiscal priorities for the country, but I feel for consumers who are struggling to fill their cars with fuel," he stressed.
Andy Brown announced on Wednesday that Galp will end prospecting and research activity for new oil and gas fields as of early 2022, reiterating that, by 2030, the company aims to reduce absolute emissions from operations in 40%.
Ummm, NO!! The government hand in the pocket grabbing up all those taxes placed on fuel is too high. loosen the governments grip around the neck of the consumer and let people heat their homes and water, and drive to work with an acceptable fuel price.
By Nick from Lisbon on 07 Nov 2021, 12:43