Fuel increases by 6.6% despite a 20 cent discount

Fuels have reached the highest prices in the past seven years. Half of the price is due to the application of taxes, for which approximately 21,000 million euros are collected. Due to the continuous increases in fuel prices since April 13, their price (without discount) is higher than on April 1, when the 20 cent discount was applied. This means that since Easter and despite the application of the government-promoted discount of 20 cents per liter, fuel prices have risen by more than 6.6%.

According to the Consumers’ Association OCU, the last measure of the cabinet to lower the fuel price is currently insufficient, for which it again asks for a temporary abolition of taxes. For this organization, consumers are the major payers of the crisis because of the double bill that means the increase of the energy price relative to the price of various goods and services.

an increase of 5.5% in petrol 95 and 6.6% in diesel since April 13, just before the Easter operation. An increase that places their current prices at least 6 cents higher than they were on April 1, when the government-approved 20-cent cut was applied.

In concrete terms, the average price of 95 petrol has already reached 1,886 euros/litre, compared to 1,769 euros/litre on April 13 and 1,800 euros/litre on April 1. For its part, the average price of diesel is 1,899 euros/litre today, compared to 1,782 euros/litre on April 13 and 1,836 euros/litre on April 1. In all cases, these are prices without the 20 cent discount, but including those collected in the Canary Islands, Ceuta and Melilla, which have a lower tax rate.

The organization therefore believes that the latest government measure to reduce the price of fuel is currently insufficient and therefore asks once again for the temporary abolition of taxes, as is already the case with electricity and the reduction of VAT by 10%. An application collected in the Less Taxes campaign.

According to Grupo Moure CEO Manel Montero, some of the factors involved in this surge are the rise in oil prices. And it is that although the OPEC (Organization of Petroleum Exporting Countries) countries have reduced the supply of barrels of crude oil due to the low demand due to the coronavirus restrictions; now, with increased demand, supply remains static, causing the price of a barrel to rise.

To all this, we must add that the operators have introduced a gross margin that, according to data from the CNMC (National Markets and Competition Commission) is 50% higher than in 2014, going from 0.17 euros per liter to 0.25 euros.

“At this time when the fuel price reflects the maximum prices, it is very important to break down the fuel price, which is divided into three elements,” explains the expert.

In the first place, there is the price of the commodity (oil), which, as mentioned, depends on the law of supply and demand and other factors, such as conflicts between countries. Then the fixed costs appear, such as transport or intermediaries, which represent between 9% and 10% of the final price. Finally, with a value close to 50% of the amount, are the taxes.

“In Spain we have three taxes on fuel. The Special Tax on General Hydrocarbons (TEG), which translates into € 400.69/m³ for 95 petrol and € 307/m³ for type A diesel oil, the Special Tax on Special Hydrocarbons (TEE), which carries € 72/m³, both in 95 petrol and in type A diesel oil, and the Value Added Tax (VAT), with an application of 21% on the total value of the price”, details Montero.

In this way, taking as reference the data of the AOP (Spanish Association of Petroleum Product Operators) on the average price of petrol 95 in the month of August, of 1.417 euros paid by the consumer, 0.699 € is equal to the fuel and the rest (€0.717) are taxes.

The OCU warns that consumers have few tools to prevent these increases, other than prioritizing the cheapest gas station chains, which usually coincide with low-cost and supermarket chains, but are not always close to where they live or work.

Source: La Verdad

Ida

I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.