This week, millions of households in Spain received some much-needed relief as gasoline prices saw their first decrease in four months. This ended a streak of fifteen consecutive weekly increases and was a welcome change from the high prices seen earlier this year. Diesel prices also fell for the third consecutive week, reflecting a downward trend in fuel costs.
The drop in prices is largely attributed to a recent decrease in the price of crude oil, the main raw material for gasoline and diesel. Crude oil prices have dropped to around $84 per barrel from a high of $90 in mid-April. This reduction in costs has translated to 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 these recent decreases offer some relief to consumers, fuel prices are still higher than they were a year ago. Filling a tank of gasoline now costs around 92.7 euros, while diesel comes to 84.2 euros. These prices are above pre-war levels but below the peak prices seen in 2022. In comparison to other European countries, fuel prices in Spain are in line with the eurozone average.
The price of automotive fuels is influenced by several factors, including refining costs and taxes. With refining costs stable, fluctuations in fuel prices are mainly driven by changes in oil prices. While there may be uncertainties surrounding future oil price movements, recent decreases in fuel prices offer some relief to consumers.
In summary, last week’s drop in gasoline and diesel prices marked a welcome change for millions of households across Spain who have been facing high fuel costs for months on end. While these decreases were due largely to lower crude oil prices, there may be uncertainties surrounding future price movements due to external factors such as supply cuts by OPEC and other market forces at play.