Fuel prices rise again despite 20 cent discount

BarcelonaThe average price of fuel in Spain has risen this week by 1.35%, reaching new highs despite the fact that the increase is still contained by the mandatory 20-cent per litre rebate approved by the Spanish government.

According to data from the European Union Oil Bulletin, which obtains the average price from over 14,000 petrol stations in Spain during the last seven days, €1.872 euros per litre of diesel represents a new historical maximum, overtaking last week's €1.847. As for gasoline, the average price per litre has also gone up for a second consecutive week: it increased 1.1% to €1.837, a level only surpassed in mid-March, when the price hovered around €1.845.

However, these prices do not include the 20-cent per litre rebate approved by the Spanish government and in place since April 1. After the discount, a litre of gasoline is €1.637 and a litre of diesel is €1.672 euros, although these data would not be entirely correct, since some oil companies have applied higher discounts.

First vice-president of the Spanish Government and Minister of Economy Nadia Calviño warned this Thursday that the executive will put an end to the 20-cent bonus if operators absorb it and prices are maintained. "If we see that some measure keep prices stable because operators absorb the aid, we will not continue with it," she assured in an interview to RNE.

Diesel to gasoline shift

For another week, diesel was more expensive than gasoline, with a difference of over three cents, which had not happened since 2011. Compared to last year, the average price of a litre of gasoline has increased by 38%, while in the case of diesel it has gone up by 57%.

These levels are recorded against a backdrop of rising crude oil prices due to fears of supply shortages following the European Commission's proposal to veto Russian oil imports this year. The Brent barrel, the European benchmark, is trading this Thursday at over $110, while the North American WTI barrel is trading at over $108.