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ARCHIVED - Price of diesel in Spain set to shoot up following Russian oil embargo
From February 5, Spain will be prohibited from buying oil products from Russia
The war in Ukraine has already unleashed supply chaos in Europe but further sanctions on Russian crude oil which come into play next month will hit the pockets of motorists even harder. Drivers are already paying around 18% more for petrol since the Spanish government scrapped the fuel discount at the start of the year, and a litre of diesel has increased by 15%.
Come February 5 though, filling stations and oil companies have warned that the price of diesel will reach a whole new level.
From this date, EU countries will be banned from buying Russian oil products, a measure aimed at further strangling its finances and hampering the war effort in Ukraine. But Europe is still heavily dependent on the invading nation for energy supplies and last year, Spain imported a huge amount of gas from Russia.
In the case of diesel, 44% of the imports to Europe came from Russia in November and every day since, the continent is short around 1.3 million barrels, which have to be brought in from outside.
There’s a clear supply and demand problem, which will only intensify with the Russian oil embargo, inevitably forcing up the price of diesel at the pumps.
Earlier this week, the presidents of Repsol and Cepsa warned the Spanish president, Pedro Sánchez, of the negative effect that this ban will have on fuel prices in Spain in the coming months.
On the one hand, a supply issue is highly unlikely since Spain depends far less on Russia for its fuel than other nations but on the other, increased demand in Europe will push up the cost.
“If the embargo on Russia causes a shortage and that price increases, that is transferred to the cost of what you pay even if you do not buy Russian diesel directly,” they concluded.
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