BarcelonaWith only one month left of the subsidy of 20 cents per liter of fuel – which the Spanish government is considering extending – the price of petrol is unstoppable and is rampant week after week. Coinciding with the three months since the start of the war in Ukraine, there has been a new historical record for the last seven days: 1.94 euros per liter, an amount that is 2.2% higher than the previous week. according to data published by European Union Oil Bulletinwhich collects the average price in 11,400 gas stations throughout Spain.
The record price is without applying the subsidy of 20 cents per liter agreed by the Spanish government – of which the executive contributes 15 cents and the oil companies 5 -. If this subsidy applies to the price of a liter of 95-octane petrol, the cost is slightly above the level it was at the end of February, just when the war broke out in Ukraine. With or without the 20-cent discount, the price of 95-octane unleaded petrol in Spain is below the European Union average, which is 1.98 euros per liter, and in the euro area, with an average price of 2,049 euros.
The price of gasoline has not only skyrocketed but has also surpassed the price of diesel, which with the Russian invasion of Ukraine had surpassed since March, for the first time in history, the price of gasoline. gasoline. The rise in fuel prices is mainly due to the reduction in crude oil imports from Russia, but also from refined products such as gasoline and diesel. According to the European bulletin, the price of a liter of diesel in the last week stood at 1.86 euros, 1.06% less than the previous week, although it is still more expensive than the European Union average ( 1,856 euros per liter), but below the euro area average, where the price is 1,896 euros.
The lowest final price level compared to the eurozone countries is due to the fact that Spain, despite VAT, higher taxes and biodiesel levies, continues to have less fiscal pressure than the EU average. Compared to a year ago, the average price of a liter of petrol has risen by 43.7%, while diesel is 54.3% more expensive.
In fact, the First Vice President and Minister of Economic Affairs, Nadia Calviño, has admitted that if the carriers had found it useful, the executive would have lowered gasoline taxes. Calviño, in statements to Telecinco, stressed that, contrary to what the PP argues, the government has lowered taxes, albeit selectively, by applying reductions to the taxation of electricity. “We have lowered the price of petrol, not taxes, because the carriers told us it was not useful to them,” he said.
These fuel prices are recorded in an environment of steadily rising crude oil in the current context, marked by the invasion of Ukraine by Russia. Thus, the barrel of Brent, the benchmark in Europe, was trading around $ 114.5 yesterday, while the American Texas was trading at almost $ 111. The price of fuel depends on many factors, such as the 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 of the price of crude oil does not translate directly into the price of petrol, but does so with a temporary lag, which suggests that fuel prices will remain at a maximum in the coming weeks. A fact that can extend the bonus of 20 cents per liter, as the Spanish government admitted that the subsidy would remain as long as prices were high. As fuels continue to climb, the price of light in the wholesale market remains below 200 euros per megawatt hour. For this Friday the price set in the Iberian market is 168.54 € / MWh, 2.7% less than on Thursday.
Cepsa wants to veto the subsidy to tourists
The CEO of the oil company Cepsa, Maarten Wetselaar, referred this Thursday to the subsidy of 20 cents per liter of fuel, of which the Spanish government pays 15 cents and the oil companies 5. The executive has defended that these types Measures should benefit only the most vulnerable people, “who are most in need.” At an event organized by the CEOE, Wetselaar considered a widespread subsidy for fuel “inefficient”. “It simply came to our notice then [la bonificació] to everyone in this room and to the tourists who come to Spain, ”he said. The measure, which came into force on April 1, will be in place until June 30, but the Spanish government is already “monitoring” its operation to decide whether to extend it. The Secretary General of the Spanish Group of Fuel Retailers (Aevecar), Víctor García, has said that it is “logical” that the bonus can be extended since, in his opinion, “nothing has changed” since on April 1st.
Oil and gas taxpayers will pay more in the UK
The British government announced on Thursday a package of measures of about 15 billion pounds (17.6 billion euros) to help British families cope with the rising cost of living and will be partially funded by the introduction of a 25% temporary tax on the profits of oil and gas companies. With this aid package, announced by Finance Minister Rishi Sunak, the UK government is raising £ 37 billion in direct support for households. “We know that people are facing challenges in the cost of living, which is why I am announcing more support to help deal with rising energy bills,” Sunak said. companies that make extraordinary profits from record world oil and gas prices contribute to it ”. Measures include a new single payment of £ 650 (€ 763) to more than £ 8 million for low-income households, and £ 300 and £ 150 for pensioners and people with disabilities, respectively.