Fuel Prices in Spain: A Brief Respite from the Months-Long Increase

This week, millions of households in Spain saw a small respite from the high gasoline prices that have been increasing for the past four months. After fifteen consecutive weekly increases, the price of gasoline finally decreased, marking a welcome change for consumers. Diesel also saw a drop for the third consecutive week, indicating a downward trend in fuel costs.

The drop in prices is largely attributed to the recent decrease in the price of crude oil, which is the main raw material for gasoline and diesel. Crude oil prices have dropped to around $84 per barrel from a high of $90 in mid-April. This reduction in costs has resulted in lower prices at the pump, with gasoline averaging around 1.68 euros per liter and diesel at 1.53 euros per liter last week.

Despite these recent decreases, fuel prices are still higher than they were a year ago. Filling up a tank of gasoline now costs around 92.7 euros, while diesel comes to 84.2 euros. While these prices are above pre-war levels, they are below the peak prices seen in 2022. In comparison to other European countries, fuel prices in Spain are roughly on par with the eurozone average.

The cost of automotive fuels is influenced by several factors, including the price of oil, refining costs, and taxes. With refining costs remaining stable, fluctuations in fuel prices are mainly driven by changes in oil prices. While OPEC has decided to maintain supply cuts and keep oil prices above $80 per barrel may impact future fuel costs, recent decreases offer some relief to consumers.

Overall, this small decrease in fuel costs is welcome news for Spanish households who have been feeling the strain of high gasoline and diesel prices for months now.