WorldWatch

Oil prices in Portugal are about three times higher than a year ago. The dollar remains weak, the price gains have come even though demand in Portugal. remains weak with a forcast for the first quarter 2010 down 7%.

There is a long history of tripled oil prices causing consternation among consumers, we are not there, yet, but consumer prices for regular 95 Octane at 1.45€ per litre are certainly an unwelcome sign of consumer distress. Prices have jumped 6 cents or more in the past week in many parts of the country, including Porto, Lisbon, Braga, Faro..

According to WorldWatch higher prices are taking their toll on debt-ladened consumers trying to reorganize their finances. The higher cost will first hit the nation's savings rate, he said. After that, it means delays in big ticket purchases such as cars and houses. Portugal won't be as shocked as they were two years ago, however, when prices hit a national average for regular 95 Octane at 1.45€ per litre, the effect on the recession gripped economy will be devastating causing the government to collapse.

The higher prices comes as the government and the oil companies such as Galp, BP, Repsol and Cepsa continue the monopoly of high fuel prices for the motorist. higher prices will hurt the economy and push it deeper into recession.

Today crude prices dropped as demand for heating oil, natural gas and electricity have not increased as expected.