You’ve no doubt noticed (where it hurts the most, at the pump): fuel prices have not stopped rising since July 15. Diesel A now surpasses the 1.8 euro per liter mark on average, while unleaded gasoline 95 is approaching 1.7 euros per liter.
The end of the reduced 10% VAT and the worsening in the US-Iran conflict continue to tighten the grip on the oil market, which is already volatile to begin with. From major oil companies like Repsol they assure that, thanks to Spain’s refining capacity, we are covered, but that may not hold true in other European countries.
90 euros to fill the diesel tank… what we couldn’t imagine a few years ago
In the ongoing war between the United States, Israel and Iran, a new actor aligned with Iran has emerged: Yemen. The Houthis are bombing Saudi oil tankers in the Red Sea, choking off maritime oil transport. And if the number of barrels in the market declines, prices will continue to rise.
CNN points out that the extremist group has threatened to cut an important alternative route to the Strait of Hormuz, the Bab al-Mandeb. Experts warn that “a total blockade of Bab al-Mandeb could push oil prices above $100 per barrel”.
In fact, the Brent crude price is once again hovering near $100 a barrel in the futures market, and the worst part is that the military tension shows no signs of abating. Trump is prepared to carry the war through to its end, while markets—and consumers—bear the uncertainty in the form of price increases.
With this week’s prices, filling an average 55-liter diesel tank costs nearly 90 euros, while filling an average 55-liter gasoline tank currently requires about 87 euros.
Gráfico: Dieselogasolina.com
In this scenario Repsol has sought to send a message of calm—especially to its investors—stating that fuel supply in Spain is guaranteed thanks to the refining capacity we possess. However, the oil company is not certain that will be the case across Europe: “Seeing what is happening in terms of tension in the European market for jet fuel and diesel, I won’t hide that I am very concerned about the capacity we will have in Europe to ensure the supply of products in some countries,” it warned.
