There has been a lot of economic doom and gloom across Europe in recent months, especially in Spain, where inflation has reached a 37-year high and prices ranging from eggs and olive oil to utilities bills have all skyrocketed.
Russia’s invasion of Ukraine shocked already volatile fuel markets, and petrol and diesel prices have spiked across the world as a result.
Fortunately, however, petrol prices in Spain have fallen for a fourth consecutive week, and diesel for a third. With the 20 cent government discount offered on fuel prices – a measure aimed to soften the blow of crippling inflation and rising fuel prices – prices are now back under the €2 per litre threshold but still close to record highs.
Petrol prices fell by 2.5 percent in the last week, while diesel has dropped by 2.8 percent compared to last week.
Without the government discount, the price of petrol stands at €2.026 a litre and diesel remains below €2 at €1.971 according to data from the European Union Oil Bulletin.
With the government discount included, on Thursday 21st July petrol was on average €1.826 per litre – the cheapest price since the last week of May .
On July 21st diesel was sold on average at €1,771 per litre, a drop of 5 cents on last week.
Petrol prices have increased by 23 percent since the beginning of the year, and diesel by 31 percent.
What determines the price of fuel?
The international price per barrel affects the cost of fuel around the globe, but that is only part of it.
The reasons for the price increase are varied. One is the increase in demand due to the economic recovery after the pandemic, but there is also an increase in the price of a barrel of oil, as a result of Russia’s invasion of Ukraine.
Every petrol station franchise has other expenses such as production, distribution and marketing costs, which include wholesaler and retailer margins. This may be what makes smaller franchise fuel stations cheaper than big national chains.
The price is also affected by taxes and other associated costs, such as the maintenance of strategic reserves and the contribution to the National Energy Efficiency Fund.
In Spain, liquid fuels derived from petroleum are subject to two taxes: VAT and the Special Tax on Hydrocarbons (IEH).
How to find the cheapest petrol stations?
Prices vary from region to region and area to area, so how do you know where to find the cheapest place to fill up?
One of the best ways to find the cheapest place is in fact via Google Maps, where you can find the up to date prices for each station. It works both on the mobile app and a computer. First, click on the Petrol Station or Gasolinera button, which appears below or next to the search bar. This will generate a map of all the petrol stations and their prices closest to you. You can also change the search area, if you want to check the prices somewhere else.
Keep in mind that not all petrol stations will display prices. If you want to find out the prices of different types of petrol, as well as diesel at a particular petrol station, simply click on it and it will give a list of the types it offers and the prices.