The average fuel price trend in Spain shows a sustained decline, with gasoline at 1,565 euros per liter after a week with lower prices compared with the previous year. Diesel sits at 1,643 euros per liter, reflecting a 1.08 percent drop from the prior seven days.
Gasoline prices have fallen for a sixth consecutive week, returning to levels seen before the Russian invasion of Ukraine on February 24, 2022. In the week starting February 7, the average price for this fuel was 1,559 euros per liter, signaling a broader easing in retail fuel costs.
Diesel has declined for nine straight weeks, continuing a downward trend since the end of last October based on European Union Oil Bulletin data collected by Europa Press. The gap between the two fuels remains about eight cents per liter in favor of diesel this week, a differential that has persisted for twenty weeks in a row.
Despite the recent declines, both fuels remain well below their summer peaks. In July, gasoline reached a high of 2,141 euros per liter and diesel approximately 2.10 euros per liter. Today, the average price for gasoline is the lowest since early February, while diesel has not reached a new low since the week of April 11.
Prices continue to fall this week, with gasoline at 1,818 euros per liter and diesel at 1,837 euros per liter prior to the 20-cent per liter subsidy that the government approved to take effect at the end of March.
The subsidy applies to both fuels and includes taxes, but it does not reflect the minimum 20-cent per liter discount that was originally planned to start on April 1, due to higher-than-expected discounts offered by some oil companies and loyalty programs. If the subsidy is applied, the effective costs would be 1,365 euros per liter for gasoline and 1,443 euros per liter for diesel, both notably lower than the levels seen at the end of March before the aid began.
This week the government decided to end the general fuel subsidy for 2023, retaining the 20-cent per liter support only for specific professional groups that include hauliers, farmers, shipping companies, and fishermen.
For private consumers, the subsidy of 20 cents per liter ends on January 1, marking the last week during which individuals can benefit from the discount.
5.81% and 21.97% more expensive than a year ago
Even with the subsidy in place, gasoline remains 5.81 percent more expensive than a year earlier, while diesel shows a rise of 21.97 percent. These figures come amid elevated crude oil prices in a context shaped by the ongoing conflict in Ukraine. Benchmark Brent crude in Europe traded near $82.4 per barrel this Thursday, with the U.S. Texas blend around $77.1.
Fuel prices depend on multiple factors, including base price set by the market, crude oil movements, taxes, material costs, logistics, and gross margins. Changes in crude prices are usually felt with a delay in retail fuel pricing.
At current levels, unleaded petrol with 95 octane, excluding the subsidy, remains below the European Union average of 1.637 euros per liter in Spain and the eurozone average of 1.676 euros per liter. For diesel, Spain’s price sits below the EU average of 1,722 euros and the eurozone average of 1.73 euros per liter.