Fuel prices shoot up by 50% in 3 years in the south of Spain

The cost of refuelling vehicles at service stations across the Costa Del Sol has witnessed a dramatic surge in recent times, adding to the financial burden faced by motorists. New data reveals a staggering 56.50% increase in the price of diesel over just three years.

According to Spain's Ministry for Ecological Transition, the average price per litre of diesel in September 2020 stood at 1.072 euros within the province of Malaga. In sharp contrast, by this Monday (September 11th 2023), it has escalated to 1.666 euros. The Andalucía region has experienced a parallel hike, with diesel prices surging by 55.41% in the same three-year period.

Simultaneously, the relentless surge in fuel costs extends to other varieties as well. Notably, 95-octane petrol now commands a staggering 46.87% higher price tag in Malaga and a 47.06% increase in Andalucía, compared to the rates of three years ago. As of September, the average price for 95-octane petrol in Andalucía stands at 1.728 euros per litre, while in Malaga, it has soared to 1.762 euros per litre.

This rise in prices can be attributed to a myriad of factors, which include mounting taxes, distribution expenses, and fluctuations in raw material prices. It's worth noting that roughly 40% of the total fuel cost constitutes various taxes. Notably, fuels do not fall under the category of basic necessities, rendering them ineligible for reduced sales tax under Spain's IVA regulations.

Further compounding the issue, OPEC has steadfastly adhered to its plan, initiated in April 2023, to curtail oil production by 1.1 million barrels per day. This strategic move aims to bolster profit margins extracted from each barrel, consequently exerting upward pressure on the Brent crude oil prices in the market.

Additionally, the ongoing trade tensions with Russia, a key oil-exporting nation, stemming from the Ukraine invasion, loom large as a significant contributing factor to the escalating fuel prices.

The ongoing surge in fuel costs has raised concerns among the region's consumers, who are grappling with the economic implications of these ever-climbing expenses. As motorists and businesses alike brace for the financial impact, the future of fuel prices remains uncertain, dependent on a delicate balance of global economic factors.