Resentment of the executive, who analyzes whether oil companies are taking advantage of the support to raise prices, while crude oil is at the same level as in April
The ever volatile and complex fuel market today is scrutinized like never before by drivers who come to a gas station to refuel; and the government itself, too, which is beginning to glimpse signs that are not to its liking at the pumps. As the price of fuel has already surpassed its own record, a month after the activation of the state bonus designed to counter the escalation of oil caused by the war in Ukraine, it reached unprecedented references at gas stations.
Since the anti-crisis decision came into effect on April 1, a liter of petrol and diesel now costs about five euro cents more than then. The measure introduced by the executive included a state rebate of 15 cents per liter (and up to 20 cents if it was a small or medium-sized gas station, i.e. outside the large companies), plus five cents that each oil company had to contribute. With the evolution of costs, these five euros have already eaten up the bonus itself.
Specifically, the liter of diesel has increased by more than 2%, mainly due to the increase of more than 10 cents per liter in the past two weeks. The average of this fuel is now 1.91 euros, a reference never seen before. At the beginning of April, it stood at 1.86 euros. Petrol, for its part, has even become more expensive, 3.3% in the past month, from almost 1.83 euros to the current 1.88 euros.
And meanwhile, the barrel of Brent, the first reference that can be taken into account to analyze fuels, has exhibited behavior that has seen it fall from the roughly $113 it traded at the end of March, later to $98, and again in recent weeks. to refurbish to $113. That is, today it maintains the same cost. The companies in the sector insist that their prices are not set by Brent, but by the prices of gasoline and diesel in international markets, the evolution of which is different.
It should be borne in mind that at the end of March, the price of crude oil was falling and is now on an upward trend. It does so after the European Commission’s announcement to veto Russian oil imports in the coming months, putting costs under further pressure. In fact, the pumps haven’t transferred these increases to Brent yet.
This data has caused the first alarms in the government. Economic Vice President Nadia Calviño has already warned energy companies that if they raise prices to “absorb” the support, they will withdraw the measures and not extend them after June 30. “We need to analyze what the most effective measures are and if we see that one of them is keeping costs down because operators are raising prices and absorbing this support, we will withdraw it,” he insisted.
For the time being, the National Commission for Markets and Competition (CNMC) is studying the behavior of fuel prices, although it has not yet reached a conclusion. Once it is in your hands, as well as other data on the impact of the bonus measure, the Executive will examine what the extension of this measure, which was in effect until June 30, will be like. There is the option to apply it based on income, as well as other options being considered based on the evolution of costs over the coming weeks, according to executive sources.
Fuel prices are one of the reasons why the CPI is rising strongly, but Calviño is confident that the inflation peak has been reached in March (9.8%) and will start to decline in the second half of the year. According to the government’s forecast, inflation will end the year at 6%.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
