In the month of June, olive oil prices took a dramatic turn as supermarkets implemented an unusual reduction in prices just before the abolition of VAT on this product. The VAT on olive oil will then rise to 2% and will be at the super-reduced rate of 4% from January onwards, as stipulated by the Government in the anti-crisis decree.
The liter bottle of white label extra virgin olive oil in major supermarkets like Mercadona, Carrefour, Dia, and Alcampo dropped to six-month lows in June. While it is too early to tell if this reduction in price will be permanent, the main distributors have announced an additional reduction of around 50 cents per liter starting today.
The distributor brand EVOO bottle was priced at 9.65 euros in major supermarkets in June, compared to the 9.90 euros it had been priced at since the end of January. This price drop is mainly attributed to falling wholesale prices due to a better-than-expected harvest. Overall, the basic shopping basket cost decreased by 1.11% in June, with Carrefour applying the most significant discounts.
Despite the temporary price reductions, Primitivo Fernández, the general manager of the National Association of Oil Bottlers and Refiners (Anierac), points out that prices at origin are not showing significant movements that would indicate a change in trend. However, the abolition of VAT on olive oil has been welcomed by industry experts and consumers alike, as it promotes the consumption of this basic product of the Mediterranean diet.
The future trends in olive oil prices will be closely monitored as we approach the end of summer and prepare for potentially rainy autumns. The gradual recovery of normal prices is expected as VAT reduction measures are extended and markets adjust accordingly.
In conclusion, olive oil prices have undergone significant changes in recent months due to various factors such as wholesale price fluctuations and government interventions like VAT reductions. It remains to be seen how long these temporary reductions will last or if they will become permanent features of