Motor fuel still rising by more than 2% to reach new historical records

The average price of motor fuel in Spain has risen more than 2% this week and has climbed to new all-time highs, although it remains contained by applying the mandatory discount of 20 cents per litre approved by the Government.

Specifically, the average price of a litre of diesel and petrol has risen for the third consecutive week, after Easter, to consolidate its upward trend.

According to data from the European Union (EU) Oil Bulletin, the 1,911 euro per litre of diesel represents a new historical maximum, exceeding the 1,872 euro of a week ago, by increasing by 2.08%.

For petrol, the average price per litre has also rebounded for the third consecutive week, with a rise of 2.08%, to stand at 1.878 euro and thus also reaching a new record.

However, these average prices do not include the bonus of at least 20 cents per litre approved by the Spanish Government and which has been applied since April 1.

With the application of the bonus, the average price would be 1,678 euro per litre in the case of petrol, and 1,711 euro for diesel, although these data would not be entirely correct, since there are higher discounts, depending on the oil company.

What is consolidated for another week is the ‘sorpasso’ from diesel to gasoline, with a difference of more than three cents, something that had not occurred since 2011.

Compared to a year ago, the average price of a litre of petrol has increased by 39.73%, while in the case of diesel it is 59.38% more expensive, although without taking into account the discount currently in force.

These prices are recorded in an environment of rising crude oil due to fears of a shortage of supply after the European Commission’s proposal to ban Russian oil imports this year. Thus, the barrel of Brent, a reference in Europe, was trading this Thursday for around 105 dollars, while the American Texas was exchanged at more than 103 dollars.

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.

In this way, the evolution in the price of crude oil is not transferred directly to fuel prices, but rather with a time lag.

Despite these levels, the price of unleaded 95 petrol is in Spain below the average of the European Union, located at 1,903 euro per litre, and of the euro zone, with an average price of 1,978 euro. Something similar happens in the case of diesel, since the price in the EU is 1,905 euro (in Spain in this case it is higher, with 1,911 euro, but without taking into account the bonus) and 1,953 euro in the euro zone.

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