article_detail
Date Published: 03/02/2022
ARCHIVED - Fuel prices in Spain approach all-time high: how long will oil prices keep going up?
Experts believe petrol and diesel costs will continue to rise in Spain throughout the year
The price of a barrel of Brent oil, the benchmark for fuels across Europe, has risen above 90 dollars this week for the first time since October 2014. Rising oil costs have a direct impact on the price of petrol and diesel, and with the experts predicting that the so-called ‘black gold’ will reach a record 100 dollars this year, motoring in Spain is set to become a whole lot more expensive.
The year 2022 started off with three consecutive weeks of fuel price rises after the cost took a slight dip at the end of last year. As a result, petrol is getting closer and closer to the record price of 1.522 euros per litre that it reached in September 2021.
Those in the know believe that the rising costs of petrol and diesel are a result of increased demand as the global economy regenerates after grinding to an almost complete halt at the height of the pandemic. And since the exact same amount of fuel is being produced, it’s a simple supply vs demand conundrum.
“This increase in demand occurs at a time when the Organization of Petroleum Exporting Countries (OPEC) is reluctant to increase its production levels more than expected and therefore there is a deficit in supply,” explained Elena Díaz Aguiluz, Professor of Economics at the University of Comillas ICADE.
Over the last seven days, petrol has stood at an average of 1.520 euros per litre, the second-highest figure ever recorded, while diesel rose to 1.403 euros – a price not seen since 2013.
The bad news is that with OPEC determined not to increase its production beyond the usual 400,000 barrels, this escalation in fuel prices is likely to continue, at least in the short term.
“As long as the economic recovery continues, prices will continue to rise. This trend will continue at least this year,” the professor has predicted.
Despite the soaring costs in Spain, fuel here is still below the European average, where a litre of petrol costs an average of 1.66 euros.
Image: Archive
Loading
Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox
Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)
OR
you can sign up to our FREE weekly roundup!
Read some of our recent bulletins:
25% Discount Special Offer subscription:
36.95€ for 48 Editor’s Weekly News Roundup bulletins!
Please CLICK THE BUTTON to subscribe.
(List price 3 months 12 Bulletins)
Read more stories from around Spain:
Contact Spanish News Today: Editorial 966 260 896 /
Office 968 018 268