Gasoline rises 30% in Spain but is still cheaper than in Europe

Looking at the price poster of the gas stations is once again a concern for the Spanish. The cost of fuel is one of the factors that push up the price escalation -with inflation at unprecedented levels- and it seems to have no end after ten consecutive weeks of increases. In the last year, the cost of filling the car’s tank more than 30% more expensive and it is now approaching its all-time highs, registered in 2012. Despite this increase, after the oil ‘rally’, Spaniards are still below the European average and in all the countries of the large economies of the euro zone the cost is older.

Specifically, according to the last Oil Bulletin of the European Union, the average price of 95 unleaded gasoline in Spain stands at 1.51 euros per liter. It’s about your highest level since September 2012, when it registered its all-time high of 1,522 euros. Just a year ago, in November 2020, the price was 1.14 euros. For Spaniards, this translates into 20 euros more each time they fill an average tank of 55 liters. The upward trend in cost is similar for owners of diesel cars, whose price has risen more than 36%.

The cost, even so, is lower than both the average for the European Union, which includes 27 countries, and for the Euro Zone, 19 regions. In the first case, the price of gasoline reaches 1.66 euros per liter, 34% more than a year ago, while diesel has risen 37.5%, up to 1,509 euros. In countries with the euro as their currency, the cost of gasoline and diesel is higher, 1,716 and 1,532 euros, respectively.

Despite the fact that Spain is below the average European cost of gasoline, it is in ninth place. Ahead are other nations like Malta, where is the cheapest gasoline in the Euro zone (1.34 euros / liter), followed by Cyprus and Slovenia. France, for its part, although it has the most expensive gasoline compared to Spain, it also costs below the average, compared to the rest of the large economies with the euro as their currency, which exceed 1.7 euros.

Alexadr Lukashenko

Holland It is the most expensive country to pay for gasoline, almost two euros for each liter. In total, an average deposit costs almost 110 euros, compared to 83 in Spain. The ‘top 3’ of countries as the most expensive fuel is completed Finland, also above 1.9 euros per liter, and Greece, where they reach 1.78 euros.

The price of oil has risen by 60% since January

Despite the differences, the upward trend spreads to all countries in the face of the oil ‘rally’. The price of a barrel of oil Brent, a benchmark in Europe, is currently trading at $ 83, more than 60% higher than in January of this year and over 120% compared to its value a year ago, when it did not exceed 40 dollars. The advance extends to US crude West Texas Intermediate (WTI), which is also trading at an unprecedented level for seven years, close to 82 dollars. Even so, after reaching highs since 2014 in both cases, the increases have moderated in recent weeks. For now, the expectations that the US will release more reserves in the face of high demand, coupled with the downward revision of demand that OPEC reported on Thursday due to high energy costs, weigh heavily.

The global economic recovery boosted energy demand, coinciding with a supply reduction due to the caution in the supply of OPEC, which has not wanted to increase its production, together with a fall in investment in the industry in view of sustainability objectives. Now, the market’s attention continues to be focused on the demand evolution before the end of the restrictions due to the pandemic in some countries and the arrival of the cold in the northern hemisphere.

On the other hand, the price of a barrel reflects a gross cost, but until it is converted into fuels derived from petroleum, such as gasoline or diesel, it must go through the refining process. The capacity to refine these products is greater in Spain than in other countries, so costs, for example transport, are reduced. In addition, we must add the devaluation of the euro against the dollar. The price of crude uses the dollar, but the final cost is translated into euros, so the exchange rate must be taken into account. A revaluation of the euro against the dollar mitigates the price escalation, but if the value of the euro falls, the rise in cost worsens. The latter is what has happened in recent months. The EUR / USD price stands at 1,147 euros, almost 6% less than at the beginning of the year.

But the price of a barrel of oil only influences a part of the final cost of fuel. The lower level of final prices compared to neighboring countries is due to the fact that Spain, despite VAT increases, higher taxes and levies on biodiesel, continues to have a lower tax burden, in general, than the community average.

Source: LA INFORMACIÓN – Lo último by

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