Calviño warns they are monitoring irregularities with the CNMC to see if the fuel subsidy is effective
A month after the government’s anti-crisis plan was launched, economic vice president Nadia Calviño is warning energy companies that if they raise prices by “absorbing” aid, they will withdraw the measures and not be extended beyond June 30. “We need to analyze the most effective measures 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 confirmed in an interview on RNE.
The economy minister believes this is a time for the “responsibility” of all companies, especially energy companies: “We all have to help,” she said. And he gave as an example that from within the ministry they have asked all electricity companies for their gas data to make a more accurate trade-off of the prices in the CPI rate with the National Institute of Statistics (INE) and “there is another one that has not delivered them”, without wanting to specify what it is.
For example, Calviño assured that if these companies “don’t do what they should,” the National Commission on Markets and Competition (CNMC) “will investigate any price hike that absorbs government support.” He explained that they are studying what is happening with petrol prices in Spain and in other countries to “adapt” the decree to needs, and that they will use “all available tools” so that companies do not stop the price drops and investigate possible possible behavior that prevents this.
The data is clear: the average fuel price in Spain has risen by 1.35% this week from already record levels last week, bringing the price of a liter of diesel to 1.91 euros on average and that of petrol to 1. .87 euros. time highs. Since the anti-crisis decision came into effect on April 1, the liter of diesel has risen by more than 2.5%, mainly due to the increase of more than 10 cents per liter in the past two weeks. Petrol has also become more expensive by 2.7% in the past month. Therefore, these price increases are starting to eat up some of the bonus launched by the government on April 1.
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. The government expects inflation to end the year at around 6% on average, but in a context of “such uncertainty”, the minister acknowledged that forecasting is difficult.
In addition, the blow of the omicrom variant of the pandemic in China with the closure of the port of Shanghai may “delay these predictions,” he explained. “If the ships can’t come from China, transport costs could increase and deliveries will be limited, although this will be noticeable a few months later,” Calviño said.
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.
