Last week, households across Spain saw a much-needed respite as gasoline prices finally dropped after four months of consecutive increases. This marked the end of a 15-week streak and brought relief to millions who have been struggling with high fuel costs. Diesel prices also fell for the third week in a row, reflecting a downward trend in fuel costs.
The drop in prices can be attributed to a recent decrease in the price of crude oil, which is the main raw material for gasoline and diesel. Crude oil prices have fallen from $90 per barrel in mid-April to around $84 per barrel today. This reduction in costs has translated into lower prices at the pump, with gasoline averaging around 1.68 euros per liter and diesel at 1.53 euros per liter last week.
While recent decreases offer some relief to consumers, fuel prices are still higher than they were a year ago. Filling up with gas now costs around 92.7 euros, while diesel comes to 84.2 euros – both above pre-war levels but below peak prices seen in 2022. In comparison to other European countries, fuel prices in Spain are on par with the eurozone average.
The price of automotive fuels is influenced by multiple factors such as oil price fluctuations, refining costs, and taxes. With refining costs stable, recent decreases in fuel prices are mainly driven by changes in oil prices. The decision by OPEC to maintain supply cuts may keep oil prices above $80 per barrel in the coming months, potentially impacting fuel costs again. Despite these uncertainties, recent decreases provide some relief to consumers who have been hit hard by high fuel costs earlier this year.
In conclusion, while last week’s relief was welcome news for millions of households across Spain, it’s important to note that fuel prices are still higher than they were a year ago despite recent decreases due to lower crude oil pricing and stable refining costs.
