The price of gasoline hits a new record after exceeding 2 euros and is already 'eating' the government subsidy

Gasoline and diesel are clearly above EU price levels in Spain

MADRID, 9 Jun. (EUROPA PRESS) -

The average price of gasoline in Spain has chained a new week of increases, its seventh, and has climbed to a new historical maximum, for the first time already above the level of 2 euros per liter, and 'eating' already the full subsidy of 20 cents per liter that came into force last April.

Specifically, the average price of a liter of gasoline this week stood at 2,048 euros, after registering a rise of 4% compared to seven days ago, according to data from the European Union Oil Bulletin collected by Europa Press.

That average amount includes taxes, but does not reflect the discount that came into force since last April 1 of at least 20 cents per liter, since there are higher discounts, depending on the oil company.

Counting on this subsidy, the price of a liter of gasoline would thus be more expensive than in the last week of March (1,818 euros), before the discount began to be applied, with which the increase in prices recorded by this fuel since then has already absorbed all of the aid.

In the case of diesel, the average price per liter, after three weeks of declines, has picked up again, with an increase of 3.45% compared to seven days ago, to stand at 1.916 euros.

In this way, despite this high price level for diesel, this fuel has registered a more favorable evolution since the beginning of March than that of gasoline. Thus, when applying the reduction of 20 cents per liter, its amount would be about 12 cents less than at the end of March.

Compared to a year ago, the average price of a liter of gasoline has become 51.6% more expensive, while in the case of diesel it is 58% more expensive, although without taking into account the currently valid bonus.

Meanwhile, since the invasion of Ukraine by Russia at the end of last February, the prices of both fuels have shot up almost 30%.

These prices are recorded in an environment of constant rises in crude oil in the current context, marked by the invasion of Ukraine by Russia. Thus, the barrel of Brent, a reference in Europe, was trading this Thursday above 123 dollars, while the American Texas was exchanged at just over 121 dollars.

The price of fuel depends on multiple factors, such as its specific price (independent of oil), the evolution of crude oil, taxes, the cost of raw materials and logistics, and gross margins.

In this way, the evolution in the price of crude oil is not transferred directly to gasoline prices, but rather with a time lag.

With these levels, the price of unleaded gasoline of 95 is in Spain already above the average of the European Union, located at 2,018 euros per liter, although not of the euro zone, with an average price of 2,061 euros.

In the case of diesel, the price in Spain is also higher than the EU average, which is 1,908 euros, although it is below that of the euro zone, with a price of 1,942 euros.

The lower level of final prices with respect to surrounding countries is due to the fact that Spain, despite VAT, higher taxes and levies on biodiesel, continues to have lower fiscal pressure, in general, than the community average.