Drivers face increase in fuel prices for Operation Exit

Drivers are facing the first summer getaway with the most expensive fuel prices than a year ago. Anyone traveling by combustion car in Spain this summer will have to dig slightly deeper into their pockets than a year ago. After nearly two months of decreases, fuel prices slightly increased last week, reaching 1.62 euros per liter for gasoline and 1.47 euros for diesel. These prices are respectively two and three cents higher than at the end of June last year; back then, gasoline averaged less than 1.6 euros at Spanish service stations, while diesel was just above 1.44 euros. In the past week, gasoline prices have increased slightly (0.06%) at the pumps, while diesel has risen by 1.17%. This marks the end of the downward trend that began in early May, according to data published this Thursday in the European Union Petroleum Bulletin, based on a sample of 11,400 service stations. The increase, although not substantial, comes just before the first summer holiday getaway, a period for which the Directorate General of Traffic (DGT) projects 94 million road trips, 400,000 more than last year. Of that figure, just under half (45.7 million) will occur in July, and the first special operation will start at 3:00 p.m. this Friday, with anticipated congestion at the exits of major urban areas. Filling up an average gasoline tank today (55 liters) implies a cost of nearly 89 euros, compared to just under 81 euros for a diesel car. In the first case, the accumulated increase since January 1 is around 5.3%, while diesel, far from becoming more expensive so far this year, has decreased by 1.6%. Apart from the gradual electrification, which will soon begin to impact fuel consumption, gasoline has continued to gain market share in private vehicles in Spain. However, diesel remains the dominant fuel with a market share of over 54%. Gasoline follows closely behind, with nearly 40%, according to data from the Anfac association. In both cases, the prices that motorists face at the pumps today are far from the levels reached in mid-2022 when the Russian invasion of Ukraine drove fuel prices to their historical peak, well above two euros per liter, prompting the government to activate a universal subsidy of 20 cents per liter. Fuel prices in Spain are also substantially lower than those in most European neighbors, who have higher taxes (as recommended by most international organizations to discourage fossil fuel consumption) and are also forced to import most of what they consume. In contrast, the Iberian Peninsula is one of the European regions with a higher number of refineries. Gasoline currently hovers around 1.79 euros per liter on average at eurozone service stations and 1.74 euros in the EU27; 17 and 12 cents more, respectively, than in Spain. The differences are even more pronounced in diesel: it averages 1.64 and 1.62 euros, 17 and 15 cents more, respectively. In this case, taxation is key.