EU fuel price trends in Spain
This week, average fuel prices continued to ease, marking as much as a 2.4% drop and staying well below the peaks seen earlier in the year. The relief echoes the level discussed when a 20-cent-per-liter subsidy was first introduced at the end of March, helping households cope with the wider economic impact of the escalating war in Ukraine.
Gasoline, on average, fell 1.63% for the fourth consecutive week, dropping to 1,680 euros per liter. This is the lowest level since mid-April, according to European Union Oil Bulletin data compiled by Europa Press.
Diesel prices declined by 2.41%, marking a third week of price decreases and bringing the average to 1,822 euros per liter. This represents the lowest level since the penultimate week of August.
In this context, both fuels are far from the highs reached in the summer. Gasoline peaked at 2.141 euros per liter and diesel at around 2.1 euros per liter in July, while they remain below pre-subsidy levels — roughly 1,818 euros for gasoline and 1,837 euros for diesel.
The average price of a liter of diesel in Spain has remained above that of gasoline for the seventh consecutive week, with a margin of just over 14 cents.
The stated averages include taxes but do not reflect the discount of at least 20 cents per liter that has been in effect since April 1, as higher reductions may apply depending on promotions offered by oil companies and customers.
Relying on the subsidy, a liter of gasoline costs about 1,480 euros and diesel about 1,622 euros, both clearly lower than the prices seen at the end of March before the aid began. These figures illustrate a meaningful relief for consumers in the current environment.
Despite recent declines, fuel prices are still relatively high for this time of year compared with recent years.
Year over year, the average price of gasoline per liter is about 14.5% higher, while diesel is roughly 41.2% higher, even before the current discount is considered. Including the subsidy, gasoline ends up about 3% higher than a year ago and diesel about 25.7% higher.
These movements come amid a broader context of high oil prices and a lasting impact from the Ukraine conflict. Brent crude, a European benchmark, traded around $86.9 per barrel this Thursday, with U.S. WTI crude near $81 per barrel.
The price of fuels depends on many factors, including local price components independent of crude oil, the evolution of crude markets, taxes, cost of raw materials and logistics, and gross margins. The transmission of changes in crude oil prices to fuel prices typically occurs with a lag rather than in real time.
EU levels
At these levels, Spain’s price for unleaded gasoline remains at about 95, below the EU average, with 1.737 euros per liter, and the eurozone average around 1.807 euros per liter.
Diesel in Spain stands above the EU average at about 1.806 euros but remains lower than the eurozone average of 1.841 euros per liter.
However, when the minimum 20-cent-per-liter subsidy is included, both fuels in Spain would stay under the European averages, continuing to offer some relief relative to broader regional benchmarks. This subsidy is reflected in the consumer price seen at the pump and remains a key factor in price comparisons across the EU.
Attribution: EU Oil Bulletin via Europa Press