Millions of households in Spain were given a small reprieve last week as gasoline prices saw their first decline in four months, ending a run of fifteen consecutive weekly increases. This welcome change came after the high prices seen earlier this year and was attributed to a recent decrease in the price of crude oil, the primary raw material for gasoline and diesel.
Crude oil prices have fallen to around $84 per barrel from a high of $90 in mid-April, leading to lower prices at the pump. Gasoline averaged around 1.68 euros per liter and diesel at 1.53 euros per liter last week, still higher than they were a year ago but lower than peak prices seen in 2022. Filling up a tank of gasoline now costs around 92.7 euros, while diesel comes to 84.2 euros.
Despite these recent decreases, fuel prices are still above pre-war levels but below the 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 the price of oil, refining costs, and taxes, with fluctuations mainly driven by changes in oil prices. Despite uncertainties caused by OPEC’s decision to maintain supply cuts and keep oil prices above $80 per barrel, recent decreases offer some relief to consumers.
Overall, while there is still work to be done to bring fuel prices down further or stabilize them over the long term, last week’s relief for millions of households is a step in the right direction towards making fuel more affordable for all consumers.