Sunday, December 10, 2023

Why is gasoline so expensive in Spain?

Since mid-June, the oil price drew a ascending curve there are no differences. The numbers don’t lie: a barrel of Brent ranges from 73 to 95 dollars. The rise is similar across Europe, but in Spain more pronounced: what causes and why gasoline and diesel son more expensive?

the Organization of Consumers and Users (OCU) want to answer this question CONTRASTS the numbers of Spain with these nine euro zone countries: Austria, Belgium, Germany, Finland, France, Ireland, Italy, Netherlands and Portugal.

The study was conducted on three moments: since 1 May until the week of September 18, 2023, the last with data on average European fuel prices; since the beginning of july until September 18 and, finally, the months of July and August.

Rocket effect and feather effect

This price increase has a basic explanation: the rocket effect y feather effect. If there is an increase in the cost of oil, it will come to the pumps very fast (rocket). Meanwhile, if a reduction occurs, it will take longer to become effective (pen).

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The OCU explains that, in May and June, fuel prices were stable across Europe: very few differences were recorded. the starting July 3 when the start climbing. The data for that month and the following month, August, reveal that this upward trend is very strong.

The Price Of Gasoline Will Drop

Spain against Europe

Something that in Spain BECOMES especially rare. Focusing on the period from July 3 to August 28, both the increasing of gasoline and diesel higher than the European average. To this we must add that, since July 3, this increase is constant: without parenthesis.

The numbers reinforce the main conclusions of this study. In Spain, from May to September 18, the average price of gasoline increased by one 8% and the of diesel, and 14% In Europe, this increase is 8% and 16%, respectively.

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From July 3 to September, the situation at the pumps is a bit worse for Spanish drivers: the average price of gasoline has gone up a 10% compared to 8% in Europe. In the case of diesel, the increase is the same: a 16%.

Finally, at July and August the price of gasoline in the national service stations grew a 8% and the of diesel, and 12% The European average for Spain and the nine countries mentioned above is lower again: 6 and 10%, respectively.

Fuel Economy

Why are prices higher in Spain?

Why is petrol and diesel more expensive in Spain when the percentage of price increase is the same as in Europe? The answer again lies in the plume effect and rocket effect: that increasing many have arrived faster to Spanish suppliers than to those on the Old Continent.

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To this we must add that, as previously stated, in Spain the Average price increases each week: In other countries, this increase started later or they experienced some period of rest.

We also do not forget that the impact of the end of 2022 discounts is still there to deal with the consequences of war in Ukraine, the increase of cost of production of hydrocarbons or regulatory requirements typical of Spain.

Nation World News Desk
Nation World News Desk
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