Rising diesel and petrol prices put pressure on Spanish wallets

by Lorraine Williamson
diesel

 

MADRID – The cost of filling up a tank with diesel continues to rise week after week. This week, a litre of diesel costs an average of €1.688, a slight increase of 0.1%. This is the least sharp increase in the past thirteen weeks, according to the European Union’s Petroleum Bulletin.  

With this, diesel comes dangerously close to the annual peak reached in January, when a litre cost €1.704. In the last three months, the price of diesel has risen by 17.3%. 

Slight decrease in petrol prices 

In contrast to diesel, petrol has become slightly cheaper this week. A litre now costs €1.752, a drop of 0.5% compared to the peak of last week (€1.759). This decline is mainly attributed to the end of the summer vacation, which reduces the demand for fuel. 

Influence of geopolitical tensions and raw materials 

Jorge León, Vice President of Rystad Energy and fuel market expert, explains that Russia’s recent decision to halt fuel exports has exerted upward pressure on diesel markets. This is further compounded by the rising prices of crude oil, with the Brent barrel exceeding the €94 mark last week. 

Consequences for Inflation and production costs 

The rising fuel prices are beginning to show their effect on inflation, which rose to 3.5% in September, according to Spain’s National Institute of Statistics (INE). Sectors such as transport, mining, industry, and agriculture are highly dependent on diesel, and the rising prices negatively impact production costs. 

Spain compared to other EU countries 

Compared to the average fuel prices in the Eurozone, Spain remains on the low side. In countries like the Netherlands and Denmark, you pay around €2.1 per litre of petrol, while in Spain the price is around €1.752. However, on the other end of the spectrum, we find Poland and Malta, where fuel is significantly cheaper. 

The rising fuel prices are a worrying trend that increases economic pressure on both individuals and businesses in Spain. The situation continues to evolve and will undoubtedly remain a major point of discussion in the coming months. 

Also read: Fuel prices in Spain are skyrocketing 

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