The production of a modern car tire requires approximately 31 liters of crude oil – the prices of which are set to rise.
Tire prices have skyrocketed in Australia, with manufacturers blaming rising oil and energy costs.
About 31 liters of crude oil are currently required for the production of modern car tyres,According to the US Rubber Manufacturers Association –Used in plasticizers, synthetic rubber, carbon black and resins.
The price of a barrel of oil was US65.57 ($AU89) in December 2021, though it hit a record low of US123.70 ($AU170) last week – an increase of about 89 percent in just 10 weeks.
In addition, the associated energy costs – including transportation from the factory to the retailer in diesel-powered boats and trucks – have risen sharply in recent months.
As a result, To drive All major tire manufacturers, including Pirelli, Michelin, Continental, Yokohama and Bridgestone, are expected to increase prices by at least 50 percent over the next three months.
If the projection is accurate, it would mean that a set of four tires that cost $500 today will cost $750 or more by June 2022.
“Both raw material and energy costs are rising, along with an unexpected rise in the price of oil … this is going to drive up the cost of many industries including air travel, construction and unfortunately tyres,” said a spokesperson for Australia. Pirelli told To drive,
“Pirelli is working hard to reduce this by minimizing the flow-on effect, but this year is expected to increase prices for all tires … we observe a general trend of cost increases. “
It is not clear when prices are likely to come down again, although oil prices are not expected to drop significantly in the near future.
The war in Ukraine and subsequent Western sanctions on Russian exports have been the primary drivers of high energy prices in recent months, and have triggered record fuel costs in most major countries.
However, inflation has been rampant across all aspects of the automotive sector in the last 18 months; The cost of new cars has steadily increased amid a shortage of parts and supply chain issues.
Read more about William Davis
