Fuel prices keep falling in Spain with petrol and diesel both below €2/litre

The price of fuel keeps dropping in Spain, with petrol and diesel both finally sitting below €2/litre.

According to data from the European Union Oil Bulletin this Thursday, July 28, the price of fuel in Spain has fallen again. Both petrol and diesel are finally below €2/litre for the first time since the start of June.

Specifically, the average price of a litre of petrol this week stood at €1.954, after registering a drop of 3.5 per cent compared to seven days ago. This is the fifth consecutive week the price has come down.

Diesel also registered a drop of 1.92 per cent in the last week, currently standing at an average of €1.933/litre, decreasing for the fourth consecutive week.

These average amounts include taxes, but do not include the mandatory government discount of 20 cents per litre that came into force last April 1. As there are some oil companies offering different discounts and loyalty promotions, it is impossible to include these in the final averages.

If the government’s subsidy was to be included then petrol would be an average of €1,754, while diesel would be €1,733. In both cases, these prices would be lower than those recorded at the end of March, before the discount came into force.

Compared to the same week one year ago, the average price of a litre of petrol is almost 39 per cent more expensive. In the case of diesel, it has become 53 per cent more expensive, although without taking into account the current discount.

Taking into account the subsidy, the price of a litre of gasoline is almost 25 per cent more expensive than at the start of the August 2021 holidays, while in the case of diesel it is 37 per cent higher.

Filling a 55-litre tank would now cost around €96.5 euros, including the subsidy, just over €19 more compared to a year ago. For diesel, the outlay is around €95.3, almost €26 more than on the same date in 2021.

These figures are recorded in an environment of high crude oil prices in the current context, marked by the war in Ukraine. Despite the relaxation in its prices in recent weeks, this Thursday, July 28, a barrel of Brent oil, a reference in Europe, was trading at $103 dollars, while the American Texas was at $98.8 a barrel.

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

With these current levels, the price of unleaded ’95 petrol in Spain is above the average of the European Union, where it stands at €1,879/litre, and the eurozone, with an average price of €1,925/litre. Diesel is also higher than the EU average, which is €1,902/litre, although not in the eurozone, where the average price is €1,935/litre.

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