Have fuel prices dropped in Malaga province since the government's measures?
The price of petrol has fallen the most in Malaga, although the reduction is also noticeable in diesel
The prices at petrol stations in Malaga province these days vary so much that many drivers are wondering whether there has really been a drop in prices, following the central government aid announcement.
The package came into force on Sunday, 22 March, with a reduction in fuel, gas and electricity taxes from 21 to ten per cent. In addition, the tax on hydrocarbons has been lowered to the minimum allowed by the EU. The government has activated subsidies and aid for the sectors most affected by the war in Iran.
Consumers, however, fear that, given the volatility of the global market, the rise in the price of crude oil would eventually offset the tax discount. This hasn't been the case, at least for now, and fuel is currently cheaper than it was on Saturday.
Consumers complain that one in four petrol stations raised prices the day before the tax discount came into force.
The biggest drop has been in the price of 95-octane petrol: from an average of 1.85 euros on 21 March to 1.64 euros on 24 March, a decrease of 21 cents. This is according to data from the Ministry of Ecological Transition's hydrocarbons calculator, as well as to SUR's observations in the province.
Meanwhile, diesel A has also decreased in price, but by a slightly smaller amount: from an average of 1.98 euros on Saturday to 1.81 euros on Tuesday. This represents a discount of 17 cents per litre.
Filling an average 55-litre tank now costs 11.50 euros less for a petrol vehicle and 9.30 euros less for a diesel vehicle.
Will things stay this way?
The question now is whether this price drop will be more or less stable or further increases will come. President of the fuel retailers association (Agavecar) Álvaro Fontes fully supports the initiative. "Anything that helps prevent prices from skyrocketing and causing hardship for people who have to reduce their consumption (...) is welcome," he said.
95-octane petrol is 21 cents cheaper, while diesel is 17 cents cheaper.
"It is true that in the last few days the price of diesel had already exceeded two euros in many establishments, so now we are returning to a certain degree of normality," Fontes stated.
According to his calculations, the average drop in the province is around 15 cents per litre.
The problem is that the international landscape remains fraught with uncertainty, so it's unclear how long this price level will last. "Business owners hope for price stability, continued normal consumption and a clear outlook for the future. We don't have that situation yet, but these measures certainly provide some reassurance."
Rise the day before the measures
Criticism from consumers was swift. According to consumers' organisation Facua, one in four petrol stations increased their profit margins on Saturday, the day before the tax reduction came into force, instead of passing on the full tax cut to consumers.
This has caused diesel to fall by an average (nationally) of 16.1 cents, compared to the 17.8 cents it should have fallen by. Facua accuses part of the sector of taking advantage of the government's measure "to make more money". This is why the tax reduction has had less impact than expected.
"Of all those that did report a price change, one in four have raised prices. In some cases, they've absorbed some of the IVA tax reduction. In others, they've absorbed the entire reduction. To make matters worse, there are 54 petrol stations that have absorbed the entire IVA reduction and have also raised their prices," head of Facua Malaga Lola García stated.
"In short, the measure doesn't curb prices. Unfortunately, it only manages to collect less tax revenue, which is detrimental to public interest."
Differences of up to 55 cents per litre, depending on the petrol station
The situation created by the implementation of the new government subsidies has further disrupted a market already heavily distorted by the war in Iran.
The price difference among petrol stations in the province is so significant that drivers can save up to 55 cents per litre, depending on which station they choose.
For diesel (gasóleo A), the cheapest price is 1.649 euros per litre, while the most expensive reaches 2.20 euros. Similarly, 95-octane petrol can be purchased for between 1.485 and 1.91 euros.
