The recent trend in average fuel prices continued this week in Spain, with both petrol and diesel showing further declines. Prices slipped by almost 3 percent, dropping below the level seen before the government’s 20-cent per liter subsidy went into effect on April 1. This change is visible in the per-liter averages published by the European Union Bulletin and reported by Europa Press.
Averages for gasoline this week stood at 1.730 euros per liter, marking a second consecutive weekly decrease that amounts to around 1.9 percent from the previous week. The data reflects that trend, with the figures sourced from the EU Petroleum Bulletin and compiled by Europa Press.
Diesel averaged 1.821 euros per liter, representing a fourth straight week of declines and a drop of roughly 2.93 percent from the prior week. The gap between gasoline and diesel remains narrow and has been moving in diesel’s favor for about 16 weeks, now standing at just over nine euro cents per liter.
Even with these downward moves, both fuels are far from their peak levels seen this summer, when gasoline touched about 2.141 euros per liter and diesel roughly 2.0 euros per liter in July. The subsidy’s effect pushed gasoline below the pre-subsidy figure, dipping past the 20-cent per liter mark that was approved at the end of March and pushing diesel below the corresponding subsidy level for the first time.
It is important to note that the average prices mentioned here include taxes but do not reflect the additional discounts available through promotions and loyalty programs offered by oil companies. If the subsidy is applied as described, a liter of petrol would cost around 1.530 euros and a liter of diesel around 1.621 euros, clearly lower than the end-of-March prices before the aid started.
The government is currently reconsidering whether to extend the subsidy because of its high cost and limited progress. The plan has focused on certain sectors rather than a universal extension or elimination.
14.6% and 32.2% higher than a year ago
Regardless of the subsidy, the price of gasoline is about 14.6 percent higher than a year ago, while diesel is about 32.3 percent higher. With the 20-cent-per-liter bonus in place, the average price for gasoline is about 1.39 percent higher than a year ago, and diesel is roughly 18 percent higher.
These figures come amid elevated crude oil prices, influenced by the ongoing conflict in Ukraine. In Europe, Brent crude traded around 87.2 dollars per barrel this Thursday, while in the United States, the Texas benchmark hovered around 80.8 dollars per barrel.
Fuel prices are driven by multiple factors, including the price of oil independent of taxes, crude oil trends, taxes, raw material costs, logistics, and gross margins. Changes in crude oil prices often show up with a delay in fuel prices themselves.
EU levels
At current levels, unleaded gasoline with a 95 octane rating, excluding the subsidy, sits above the EU average of 1.713 euros per liter in Spain but below the eurozone average of 1.763 euros. For diesel, Spain’s price runs above the EU average of 1.808 euros and is close to the eurozone average of 1.828 euros.
Overall, Spain remains above the EU gasoline average and near the diesel averages when the subsidy is not counted, highlighting the mixed impact of policy measures and market forces on daily pump prices.