The upward trajectory of fuel prices following the rise in oil prices and the dynamics of the rate of exchange in April-June continued in the second quarter of this year, says a new inflation report presented by the National Bank of Moldova. The report shows the fuel prices in the immediate period will be marked by increased uncertainty due to the volatility of oil prices on the international oil market and the impact of the new methodology for calculating and applying the prices of oil products, IPN reports.

According to the report, the annual rate of fuel prices grew from 5.7% in March 2021 to 18.1% in June 2021 primarily under the influence of the rise in the price of liquefied petroleum gas.

The average annual rate of fuel prices in the second quarter of this year was 15.7%, being by 16.9 percentage prices higher than in the first quarter of this year, chiefly due to the increase in the prices of gasoline and diesel fuel at filling stations and the rise in oil prices on the international market and the depreciation of the national currency against the U.S. dollar in the period.

In this regard, the average price of Urals crude oil was 66.8 USD/barrel, an increase of 12.2% compared with the first quarter of this year. The Moldovan leu in the period depreciated by 19% against the U.S. dollar.

The prices of liquefied petroleum gas and firewood in the second quarter had a positive impact on the annual rate of fuel prices.