The prices of petrol in Switzerland have been relatively stable since 2022, when Russia invaded Ukraine. But now they are climbing again.
Due to the situation in the Middle East, petrol prices in Switzerland have increased by 10 to 15 percent compared to the last week in February – that is, before US and Israel had launched airstrikes on Iran.
But this is just the beginning: according to Roland Bilang, director of Avenergy, the umbrella organisation for oil market professionals, they will continue to climb in coming days and weeks, possibly reaching 2 francs per litre – up from about 1.70 per litre currently for unleaded 95.
However, Bilang does not foresee gasoline shortages in Switzerland, “because the global market is well supplied with oil.”
However, higher prices are not the only fallout from the US/Israeli invasion, economists say.
‘Significant price shocks’
If the conflict in the Middle East escalates further and the oil price continues to rise, the Swiss economy will be significantly impacted.
According to the research institute BAK Economics, growth will then fall by around a third below forecast levels.
“Significant oil price shocks would noticeably slow the Swiss economy, but are not expected to derail it,” said BAK chief economist Claude Maurer.
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But Switzerland would still fare better than other countries.
Economists at Julius Baer Bank point out that a sharp rise in oil prices would be a global driver of inflation.
In Switzerland, however, this would likely be at least partially offset by the strong franc.
“In times of heightened uncertainty, the domestic currency attracts a lot of capital, which causes the franc to appreciate. Currently, this effect is still small, reflecting the hope for a swift end to the war,” they said.
