In June, olive oil prices dropped to six-month lows in major supermarkets such as Mercadona, Carrefour, Dia, and Alcampo. Despite the temporary reduction in price, Primitivo Fernández, the general manager of the National Association of Oil Bottlers and Refiners (Anierac), notes that prices at origin are not showing significant movements that would indicate a change in trend. However, the abolition of VAT on olive oil has been welcomed by industry experts and consumers alike. The VAT on olive oil will rise to 2% starting July 1st and will be at a super-reduced rate of 4% from January onwards as stipulated by the Government in the anti-crisis decree.
The liter bottle of white label extra virgin olive oil dropped to around 9 euros in major supermarkets compared to 9.65 euros it had been priced at since January. This price drop is mainly attributed to falling wholesale prices due to a better-than-expected harvest. The basic shopping basket cost decreased by 1.11% in June, with Carrefour applying the most significant discounts. Overall, the prices of the basic shopping basket have decreased but are still higher than they were in January 2023 when the VAT reduction was introduced.
The future trends in olive oil prices will be closely monitored as we approach the end of summer and prepare for a potentially rainy autumn. Despite temporary price reductions, consumers can take advantage of this opportunity to stock up on their favorite brands without breaking their budgets.
In conclusion, while olive oil prices have temporarily dropped due to various factors such as falling wholesale prices and tax exemptions, industry experts predict that normal pricing will gradually recover as market conditions adjust accordingly. Consumers can benefit from taking advantage of this opportunity while also supporting local businesses and promoting sustainable consumption practices during these challenging times.
