This week, in Spain, the average fuel price continued its downward trend. The 20-cent-per-liter subsidy that was introduced at the end of March to offset the surge caused by the war in Ukraine is now below the levels seen when it was first adopted.
The average price per liter of gasoline fell for the fifth consecutive week, slipping by 0.24%. It returned to 1,676 euros, marking its lowest point since April, according to the European Union Oil Bulletin and compiled by Europa Press.
Diesel also declined, down 0.77% for its fourth straight week, landing at 1,808 euros, the lowest level since mid-August.
Both fuels, however, remain well below the peak levels reached this summer, when gasoline surged to about 2,141 euros per liter and diesel approached 2.10 euros per liter in July. Even with subsidies in place, gasoline stood around 1,818 euros and diesel around 1,837 euros, still under the pre-aid levels seen before the subsidy began.
Notably, the average price of diesel in Spain has remained higher than gasoline for the eighth consecutive week, with a margin of just over 13 cents per liter.
The figures cited include taxes, but exclude the discount of at least 20 cents per liter available since April 1. Additional discounts may apply depending on promotions offered by oil companies and customers.
On the subsidy, the price of one liter of gasoline is about 1,476 euros, and diesel about 1,608 euros, clearly lower than the levels recorded at the end of March before the aid took effect for both fuels.
Despite the recent drop, fuel prices remain elevated for this time of year when compared with recent years.
15.7% and 38.1% higher than a year ago
Compared with the same week last year, the average price of a liter of gasoline is about 15.74% higher, while diesel is roughly 38.12% higher. The current discount is not reflected in these year-over-year figures.
Including the subsidy, gasoline is about 1.93% more expensive than a year ago, and diesel about 22.84% higher.
These numbers come as crude oil prices remain elevated amid the ongoing Ukraine conflict. Brent, the European benchmark, rose to around 93 dollars a barrel this Thursday after a Wednesday OPEC+ meeting, while U.S. Texas crude traded near 87 dollars.
OPEC+ has announced a cut of two million barrels per day starting next November, based on supply levels reached last August.
The price of fuels depends on many factors, including the specific price of fuel itself, crude oil trends, taxes, material costs, logistics, and gross margins. Even though crude oil movements influence fuel prices, the correlation is not direct and there is often a lag before price changes pass through to consumers.
EU levels
At current levels, the price of 95-octane unleaded gasoline in Spain remains below the European Union average of 1,745 euros per liter and the eurozone average of 1,804 euros.
For diesel, Spain’s price sits below the EU average of 1,813 euros and the eurozone average of 1,847 euros.
In recent weeks, Spain has seen gasoline and diesel prices under the regional averages, helped in part by ongoing subsidies and competition within the market. Analysts note that price movements reflect a mix of subsidies, domestic taxes, and global energy prices as the market adjusts to ongoing geopolitical uncertainties.