Fuel prices reach a new all-time record in Spain

The price of fuel in Spain has risen to an all-time record high.

According to the latest data from the European Union Oil Bulletin published today, Thursday, June 9, the average price of petrol in Spain has climbed to a new historical maximum. It has risen above €2/litre for the first time.

Specifically, the average price of a litre of petrol this week stands at €2,048, after registering a rise of 4 per cent compared to seven days ago. That average amount includes taxes but does not reflect the 20 cents per litre subsidy that came into force last April 1, since there are different discounts, depending on the oil company.

In the last week of March, petrol was €1,818/litre, before the discount began to be applied, with which the increase in prices recorded by this fuel since then has already absorbed all of the aid.

After three weeks of decline, diesel has picked up again, showing an average price of €1.916/litre. That is an increase of 3.45 per cent compared to seven days ago. Despite this high price, diesel has recorded a more favourable evolution since the beginning of March than petrol.

Thus, when applying the reduction of 20 cents per litre, its price would be about twelve cents less than at the end of March.

Compared to a year ago, the average price of a liter of gasoline has become 51.6% more expensive, while in the case of diesel it is 58% more expensive, although without taking into account the currently valid bonus.

Since the invasion of Ukraine by Russia at the end of last February, the prices of both fuels have shot up by almost 30 per cent, due to constant increases in crude oil. A barrel of Brent, which is used as a reference in Europe, was trading today above $123 (€115.70), while the American Texas was exchanged at just over $121 (€113.87).

The price of fuel depends on multiple factors, such as its specific price (independent of oil), the evolution of crude oil, taxes, the cost of raw materials and logistics, and gross margins. Any evolution in the price of crude oil is not transferred directly to fuel prices, but rather with a time delay.

Unleaded ’95 petrol is already above the average of the European Union, at €2,018/litre, whereas in the eurozone, the average price is €2,061/litre. In the case of diesel, the price in Spain is also higher than the EU average, which is €1,908/litre, although it is below that of the eurozone, which has an average price of €1,942/litre.

This lower level of final prices with respect to surrounding countries is due to the fact that Spain, despite VAT, higher taxes, and levies on biodiesel, continues to have lower fiscal pressure, in general, than the community average.

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