The average petrol price in Spain fell by 1.12% after two consecutive weeks of increases. The diesel price has been falling for three consecutive weeks of declines, dropping 3.24% from the previous seven days. The difference between the two fuels is now 11 cents in favour of diesel.
The average price of a litre of petrol fell to €1.764 this week. That is the same level as at the end of October last year,. Meanwhile the price of diesel fell to €1.876. This is the lowest level since the week of 10 October when a litre cost €1.857, according to data from the European Union Oil Bulletin.
Furthermore, prices are a far cry from last summer’s peaks, when in July the price of a litre of petrol was €2.141 and diesel cost €2.10 per litre.
The price of petrol remains below €1.818 per litre, the price at which the subsidy of 20 cents per litre approved by the government in late March still applies. However, for diesel, despite the latest declines, the price is still above that level at €1.837.
The gap between diesel and petrol
For 15 weeks now, the average price of a litre of diesel in Spain has been above that of petrol. But with the difference falling to just over 11 cents this week.
This average price for both fuels includes taxes but excludes the discount of at least 20 cents per litre that took effect on 1 April. Depending on the oil company, high discounts can be given and customers can therefore benefit from offers. With this subsidy, the price per litre of petrol works out at €1.564 and the price of diesel €1.676. In both cases markedly lower than at the end of March, before the aid took effect.
The government is considering whether to maintain this rebate, which applies to some sectors but not to all, or whether to abolish it, given its high cost and lack of progress.
3.37% and 21.36% more expensive than a year ago
Compared to the same week a year ago and including the subsidy, the price of a litre of petrol is 3.37% more expensive than a year ago, while the price of diesel is 21.36% higher.
These figures are recorded within a market of high crude oil prices in the current context, marked by the war in Ukraine. On Thursday, Brent crude, the benchmark in Europe, was trading at around $84.7 a barrel, while US Texas was trading at around $77.7.
The fuel price depends on many factors, including the specific fuel price (independent of the oil price), crude oil trends, taxes, raw material and logistics costs, and gross margins. Moreover, changes in crude oil prices are not directly reflected in fuel prices, but with a lag.
Spain compared to EU
The price of 95 unleaded petrol, without taking into account the subsidy, is above the EU average of €1.729 per litre in Spain. However, it is below that of the eurozone, which has an average price of €1.78. The price of diesel in Spain is above the EU average at €1.851 and equal to that of the eurozone at €1.876.