The price of fuel in Spain does not let up, in full escalation of crude oil and refined in international markets as a result of the War in Ukraine. This week, 95-octane gasoline already reaches an average price, including taxes, of 1,680 euros per liter at Spanish pumps. And diesel comes close, marking an average amount of 1,581 euros per liter, according to data from the latest Petroleum Bulletin of the European Union, published this Thursday. In both cases it is the highest price since there are records, which is equivalent to saying that it is the most expensive in history, since the bulletin follows the Spanish market since 2005. Thus, gasoline has chained six consecutive weeks beating the previous all-time high, dating from September 2012, and diesel has done the same in the last four weeks.
Both gasoline and diesel have become more expensive without pause since the week of last December 20. In those two and a half months, gasoline has risen 13.8% and diesel, 17.6%. In the last seven days, diesel vehicles have also seen the price of their fuel rise more than gasoline: the weekly growth of the former has been 5.6% and that of the latter, 4.4%. How does this translate to a vehicle with an average tank, 55 litres? Right now, filling that tank with gas would cost more than 92 euros, which is almost 4 euros more than a week ago and 11 euros more than on December 20. For a diesel car, refueling would cost almost 87 euros right now, 4.6 euros more out of pocket than last week and 13 euros more expensive than just before Christmas.
But if the current shortage stands out for the speed with which the amounts have grown, the comparison with a year ago is no less striking. Gasoline is 29.9% more expensive than in the same week of 2021, which translates into paying 21.2 euros more to fill the tank. In the case of diesel, the price has risen 34.8% in the last year, which in money means paying 22.4 euros more to refuel 55 litres.
But not all of this rise is due to the warlike tensions in Eastern Europe. In reality, fuel prices began to tighten much earlier because, as the coronavirus pandemic evolved and the economic revival took shape, demand grew very quickly. However, the oil-producing countries did not react to adapt the offer in the same proportion. And this situation has been affected in recent weeks by the war and Western economic sanctions against Russia, the world’s third largest producer of crude oil.
These measures, however, also hit the European economies on the side of the cost of natural gas or oil. In addition to individuals, the damage especially hits some activities, such as industry, fishing or transport. The last to request the Government “extraordinary and urgent measures for a situation never experienced to date” has been the National Career Transport Committee (CNTC), a body that brings together the main employers of freight transport, taxi and collective transport of travelers. In a statement released on Wednesday afternoon, the CNTC called for an “urgent” meeting with the Prime Minister, Pedro Sánchez, “before the serious and uncontrolled increase in fuel prices.” The statement does not specify the “effective solutions to the crisis caused by the volatility” of prices. Other business groups, such as that of SMEs that own gas stations (CEEES), have demanded from the Executive, for example, a reduction in VAT from the current 21% to 10% for gasoline and diesel.
He knows in depth all the sides of the coin.