Gasoline and Diesel Prices Soar, Drivers Face Higher Costs Ahead
The cost of filling up with gasoline or diesel has become one of the biggest expenses for drivers, causing significant financial strain. Unfortunately, this situation is unlikely to improve, as prices are expected to rise even further next week due to the potential end of government subsidies. Currently, both fuels are priced around €2 per liter.
Gasoline and Diesel Prices Soar, Drivers Face Higher Costs Ahead
The ongoing conflict in the Middle East and closures in the Strait of Hormuz have led to supply issues in Europe, driving up prices. In May, the government announced a reduction of up to 10 cents per liter in fuel subsidies. However, with the recent increases in gasoline and diesel prices, this aid may not be enough to alleviate the burden on drivers.
Economist Niño Becerra calls the diesel price rise "a genuine tragedy." In just a few weeks, the price per liter of gasoline has increased by up to 11 cents, reaching record highs so far this year. And from October, prices are expected to continue rising.
The government's decision to not increase fuel prices rests in their hands. According to the latest data, the average price of gasoline is €1.922 per liter, while diesel averages €1.927 per liter. However, prices vary significantly between service stations, with the minimum recorded gasoline price at €1.359 and the maximum at €2.399. Diesel prices range from €1.467 to €2.299.
The real problem will arise in October, when the government's subsidy may end. Until September 30, the Pedro Sánchez administration has approved a 5-cent discount per liter for gasoline and 20 cents for diesel, but this will expire at the end of the month. If the government decides not to extend it, drivers will face a significant price hike.
The Benz-Patent Motorwagen, Mercedes' 1886 gasoline-powered vehicle, led to the creation of the first gas station, which was actually a pharmacy. For now, there is no clear decision on the future of these subsidies, as the administration is studying alternatives and considering the continuation of some crisis measures, but no definitive decision has been made. This uncertainty adds to the concern, given the rapid price increases in just a month. According to the latest data from the Ministry for Ecological Transition and Demographic Challenge's Geoportal of Hydrocarbons,