BarcelonaThe graph that accompanies this information is clear. A liter of diesel and a liter of petrol cost almost the same as gas stations, something that had never happened before. There was a key factor in making diesel always cheaper than gasoline: taxation. VAT is the same for both fuels, 21%, and therefore does not affect the price. But the hydrocarbon tax on the two fuels is different: 379 euros for every 1,000 liters of diesel but 472 euros for the same amount of 95-octane petrol.
The price of fuel in Spain
Data in euros per liter
This tax difference meant that even at a time when diesel in wholesale markets was more expensive than petrol, once taxes were applied it was cheaper at gas station dispensers, explains Manel Montero, CEO of the Moure group. one of the leading low-cost gas station operators.
In fact, since the beginning of this year, 95-octane gasoline has risen by 22.8%, while diesel has risen by 33.4%. “The fastest fuel hike I’ve ever seen,” says Montero. The fact is that the fact that the price of diesel has skyrocketed more than the price of gasoline has eaten away at the tax advantage of diesel. “There is a brutal tension in the European diesel market,” say sources in the Spanish oil sector.
This significant increase in the price of diesel is directly linked to the European market and, in particular, to Germany’s energy dependence on Russia, industry sources say. They point out that Germany – as well as other countries in central and northern Europe – not only buys a lot of gas and a lot of crude oil from Russia, but also some refined products, especially diesel. The invasion of Ukraine, with its embargoes and uncertainty, has shaken European energy markets with rising gas and oil prices, as well as other products such as diesel.
Some numbers give an insight into this phenomenon. The price of a liter of diesel in Spain last week was 1.79 euros. In Germany it climbed to 2.17 euros, according to data from the European Union Oil Bulletin. Another fact better shows Germany’s great dependence on the Russian market: if in Spain the price of diesel has risen by 22.8% since the beginning of the year, in Germany it has risen by 60%. And to avoid the masks that taxes can cause, the price of a liter of diesel in Germany without taxes in the last week was 1.57 euros per liter, 84% higher than at the beginning of 2022.
That is, the rise in fuel prices reflects the rise in the price of oil, but in addition in the case of diesel there is an added effect which is the import of the refined product from Russia. A product that also has a rather inelastic part of the demand, which is that of the transport sector.
These same sources in the sector explain that the situation in Spain is very different from that of central Europe. “Being an energy island has some disadvantages, but also some advantages,” they say. Manel Montero acknowledges that the product has become more expensive and also suffers from high volatility. “We should change the prices of the fountain five times a day,” he explains. But he says there has never been a shortage of supplies. Yes, it has changed the way we buy diesel from dealers. It used to be done every day, but now, with this price volatility, we need to look for longer-term contracts, at least a month, says the CEO of Moure.
Security of supply
Sources in the oil sector say that in Spain, due to the existing refining system, supply is more than assured. “It simply came to our notice then [d’abastiment] in Europe, but Spain will get rid of it “, these sources confirm.
Montero corroborates this. “There is no shortage problem,” he explains, adding that Spain has its Cores reserves. “There is no problem for service stations” to get diesel, explains the general manager of Moure, although he indicates that among the distributors, due to the uncertainty of the moment, there has been an increase in demand for diesel . “Distributors make these moves because there is fear,” he says.
Manel Montero also explains that in the current situation, petrol stations have had to reduce their margins, but even so, there is already less demand for fuel. “Getting in the car is starting to be a luxury,” he says.