Service stations are not taking advantage the 20 eurocents per liter discount that the Government has authorized to increase fuel prices and generate more income. This is the conclusion of the National Commission of Markets and Competition, through its periodic reports, which it prepares after having supervised the costs up to May.
The Commission concluded that the fuel distribution market via service stations appears to be passing the discount on to consumers based on the information so far. It is possible that a single service station may have absorbed some of the Government’s assistance and increased its margins. However, this report does not rule it out. He says that they are individual cases and not a generalized one.
This conclusion follows the warnings of consumer associations, as well as the comment made by Vice President Nadia Calvino to the oil companies. He warned them that if they take advantage of the situation, they would be prosecuted.
Competition, however, believes that the margins accumulated over the first five months are very similar to 2021’s average gross margin. This is stated in the body headed by Cani Fernandez. They add that they are able to do this despite new fuel obligations this year. The average margin for gasoline is 11.2% and diesel more than 14%, respectively. These percentages are similar to last year’s before the Russian invasion.
The CNMC advises caution when evaluating fuel prices and profits made by companies up to May last year because of the volatility of international fuel prices. They register oscillations both up and down, depending on the month.
Already, the data from this week’s first week of July point to a shift in context in fuel prices, at least temporarily. Fuel prices are slowly but surely falling after a barrel Brent fell by 20% in one week to 100 USD. Fear of the so-called “rocket effect”: The perception that prices will rise quickly and then fall slowly is what it is.
The CNMC argues that there is a lag between oil falling and the moment it reaches the pump. They point out that it is “impossible” to transfer oil quickly and almost instantly due to the current volatilities.
Although gasoline and diesel prices have fallen in Spain this week, they remain at more than two euros per liter. This is a level that has been maintained for many weeks. According to the European Union Oil Bulletin data, the average price for a liter gasoline this week was 2.112 euros. This is a drop in price of 0.75 percent compared to seven days earlier. It has now seen two consecutive weeks of declines.
Diesel prices have dropped by 1.14% this week, resulting in a weekly average of 2.076 euros. This is the first time that it has been lower since May.
This average price does not include taxes and does not reflect the minimum discount of 20 cents per Liter that has been in effect since April 1, 2011. There are also higher discounts depending on which oil company you choose, as well as promotions for loyal customers.
This subsidy would make a liter gasoline 9 cents less expensive than it was in the week before (1,818 Euros). The discount had been applied prior to the fuel’s increase, which has completely absorbed the aid.
Diesel would cost almost four times more than its March price (1,837 Euro per liter) if it was reduced by 20 cents per gallon.
The average gasoline price has increased 51.83% compared to the same week last year. Diesel is 65.55% less expensive. However, this does not include the current bonus.
