The fuel station sector has been notably dynamic in recent months, marked by a price war that unfolded amid an ongoing energy crisis. A government program introduced last April mandated a 20-cent per liter discount for all drivers funded by public budgets, with reforms slated to begin next January 1 to apply assistance only to specific economic sectors.
Major oil companies have continued to offer additional consumer discounts as fuel prices rose rapidly. These extra reductions—up to 35 to 40 cents per liter—are framed as government-backed relief during the crisis, though they have also sparked debate about market effects.
Currently, the price war has evolved into a legal confrontation, with independent low-cost gas stations lodging complaints. Repsol, Cepsa, and BP face scrutiny by the National Markets and Competition Commission (CNMC) for potential anticompetitive practices, following pressure from smaller operators.
Repsol, which operates more than 3,300 stations, and Cepsa, with nearly 1,500 stations, have reportedly extended discounts amounting to more than 550 million euros since last April. Internal documents seen by El Periódico de España suggest that these discounts are debited from company accounts, apart from the mandatory 20-cent contribution covered by the Treasury.
It is noted that a leading operator introduced special discounts two weeks before the government approved the mandatory bonus. From mid-March through year-end, this company offered an extra 20-cent discount at its Spanish stations, totaling 439 million euros in additional reductions for customers. Special discounts favored users of Waylet, Repsol electricity and gas customers, partners of other oil firms, and professionals in the shipping industry.
Cepsa reportedly accounted for 113.5 million euros in special discounts between March and November, with costs recognized in the current month. The accounting reflects only the impact of these energy-crisis-specific discounts, excluding routine discounts for individuals and transport professionals.
legal battle
The market disruption caused by widespread discounts pushed the sector into a legal contest. The CNMC opened an investigation into the three largest oil groups operating in Spain for possible anti-competitive conduct, and recent weeks have seen inspections at the headquarters of Repsol, Cepsa, and BP as part of complaints from independent gas station associations about alleged market abuse by large groups.
Independent associations representing low-cost service stations criticized the commercial and operational strategies of the big oil companies, arguing that high wholesale prices coupled with aggressive discounts harmed competition. They warn that customers at independent stations could face suppressed margins and reduced options in the market.
Complaints from smaller networks describe a form of “clamp effect” that makes fair competition difficult and may amount to price dumping—selling below normal price or cost of production. The Association of Automatic Gas Stations (Aesae), which brings together networks such as Ballenoil, Petroprix, Bon Area, and Plenoil, is among the plaintiffs.
6,000 meters of public money
Government studies culminated in the April 1 launch of the 20-cent-per-liter discount as part of an anti-crisis shield during the price surge. The general discount is set to expire on December 31, with officials weighing the possibility of replacing it with targeted protections for sectors heavily affected by fuel costs, including transport, agriculture, livestock, and fisheries.
Officials argue that inflation-control measures should stabilize food prices and target aid to fuel costs, ensuring broad benefits while urging the use of private transport where appropriate. The program’s financial footprint remains substantial, benefiting both individuals and professionals, though some large oil companies bear a portion of the discount burden—about 15 of the 20 cents in certain cases—via public funding arrangements. Plans exist to extend many measures into the next year to cushion homes and businesses from the energy shock, though broader fuel-price relief remains uncertain.
The discount’s fiscal impact on fuel consumption is significant, with official estimates indicating a total cost of around 6.027 billion euros for the year. This is reflected in the Budget Plan submitted to the European Commission, which also projects a 5.752 billion euro impact for fuel discounts this year and residual costs of about 275 million euros next year, tied to delayed compensation payments to gas stations in early 2023.
Public accounts currently cover the discount for all drivers, whether individuals or professionals, regardless of income level. Except in some cases involving major oil companies, where the government covers 15 of the 20 cents. Officials have signaled a continuity of several measures into the next year or beyond, aiming to mitigate the energy crisis’s effect on homes and businesses, even if a further direct reduction in fuel remains uncertain.