The rise in fuel prices in just 12 weeks has outpaced the bonus that the Government approved since April 1st. It was meant to offset the price rise. You will have seen how gasoline and diesel prices have risen in the past three months, which is why the extraordinary Council of Ministers approved the extension of the aid. The terms of the assistance are still unknown.
The data from the EU Oil Bulletin confirms this. It shows that the average price for gasoline and diesel in Spain is now above two euros per gallon.
The average price for a liter gasoline was 2.141 euros this week, a rise of 1.3% over seven days ago. This average price does not include taxes and does not reflect the minimum 20 cents per gallon discount, which was in effect since April 1. There are also promotions that reward loyal customers with higher discounts.
This subsidy would make a liter gasoline almost 12 cents cheaper than it was in the week before (1,818 euro), when the discount was applied. The fuel's price rise since then has fully absorb the aid.
Diesel prices have increased by 3.64% over the past week. This is in addition to the two-euro limit (2,076 Euros) that was set for the second consecutive week. The price of diesel would then be approximately three cents more than it was at the end March (1,837 euro per liter) if the 20-cent reduction is applied.
The average gasoline price has increased by 55.82% compared to the same week last year. Diesel is now 67.68% less expensive. However, this does not include the current bonus.
Since the Russian invasion of Ukraine at the end February, prices for both fuels have risen by more than 30%. The percentage of gasoline increases to 33%, and diesel rises to 38%.
These levels mean that the unleaded gasoline price in Spain of 95% is still higher than the average of both the European Union at 2,036 Euros per liter and the euro zone average at 2,095 Euros. The price of diesel is higher in Spain than it is in the EU, at 2,031 euro per liter, but lower than that of the Euro zone, at 2.08 euros.
Although the VAT and Tax on Hydrocarbons are lighter in Spain than other EU countries, the country has been ranked seventh for the price of both fuels. It was ranked 13th in the European rankings in March. According to sector sources, the sector has made significant progress, largely due to the increased margins that companies have applied in both the refining and marketing processes.
These prices were recorded in an environment with constant rises in crude oil, which is currently being influenced by the conflict in Ukraine. The Brent barrel, which is a reference in Europe was trading at 110 dollars on Thursday, while the American Texas was traded at just over 100 dollars. The price of fuel is affected by many factors including its specific price (undependent of oil), evolution of crude oil and taxes as well as the cost of raw materials, logistics and gross margins.