Millions of households in Spain saw relief last week as gasoline prices finally decreased after a four-month streak of increases. This ended a 15-week run and marked 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 can be attributed to a recent decrease in the price of crude oil, which is the primary raw material for gasoline and diesel. Crude oil prices have fallen from $90 per barrel in mid-April to around $84 per barrel, resulting in lower prices at the pump. Last week, gasoline averaged around 1.68 euros per liter, while diesel came to 1.53 euros per liter.
Despite the recent decreases, fuel prices are still higher than they were a year ago. Filling up with gasoline now costs around 92.7 euros, while diesel comes to 84.2 euros – both well above pre-war levels but below peak prices seen in 2022. In comparison to other European countries, fuel prices in Spain are roughly on par with the eurozone average.
The cost of automotive fuels is influenced by several factors including oil prices, refining costs and taxes. While refining costs remain stable, fluctuations 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 going forward, potentially impacting fuel costs again in the coming months. Despite these uncertainties, recent decreases offer some relief to consumers who have been struggling with high fuel bills for months now.
In summary, last week’s small relief came at just the right time for millions of households facing rising fuel costs throughout Europe – marking a welcome change for many families seeking respite from their financial struggles caused by high energy bills during an unprecedented global crisis
