The average price of diesel in Spain has reached a new historic record of €2.10 per litre, while that of petrol has fallen slightly. The price of both fuels has been above two euros per litre for weeks.
The average price of a litre of petrol was €2.128 this week, down 0.6% from seven days ago, according to data from the European Union’s Oil Bulletin. This average price includes taxes but excludes the discount of at least 20 cents per litre that took effect on 1 April. Sometimes the discounts are higher, depending on the oil company and promotions for loyal customers.
Taking this subsidy into account, the price per litre of petrol would be 11 cents more expensive than in the last week of March (€1.818), before the discount was introduced. The increase in the price of petrol has completely wiped out the support.
In the case of diesel, the average litre price rose by 1.15% last week to cross the two-euro mark for the third consecutive week at €2.10 per litre, setting a new record. With the discount of 20 cents per litre, the amount would thus be about six cents higher than the price set at the end of March (€1.837 per litre). Compared to the same week a year ago, the average price of a litre of petrol rose by 53.86%, while diesel became 68.54% more expensive, however, not taking into account the current discount.
Sharp increase in prices since Ukraine invasion
Meanwhile, since the invasion of Ukraine by Russia in late February, the prices of both fuels have risen by 32-40%. Gasoline rose by 32.33% in price, diesel by 40.37%. On Thursday, Brent crude, the European benchmark, quoted close to $116 a barrel, while US Texas crude was trading at around $110.
The price of fuel depends on more factors, such as the specific price (independent of that of oil), the development of crude oil, taxes, the cost of raw materials and logistics and gross margins. Changes in crude oil prices are therefore not passed on directly to petrol prices, but follow with a time lag.
Above European average
With these prices of 95 unleaded petrol, Spain remains above the European Union average, at €2.016 per litre, and also above that of the Euro zone, with an average price of €2.071. The price of diesel in Spain is also higher than the EU average of €2.036 and that of the euro zone, with a price of €2.087. The fact that the price is lower than in neighbouring countries is due to the fact that, despite VAT, higher taxes and levies on biodiesel, Spain still has a lower overall tax burden than the EU average.