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There’s a bit of relief at the pumps across Spain this week. Diesel prices have dropped again, falling by 2% to reach €1.61 a litre, which is the cheapest it's been since early March, just before things started ramping up due to the conflict in Iran.

 

Petrol hasn't been hit quite as hard by the recent price swings, but it's also seen a dip this week. The average price for a litre of unleaded fell by 1.74% compared to last week, bringing it down to €1.52, the lowest it's been since the third week of April.

 

According to figures from the European Union Oil Bulletin, diesel is now sitting well below the €1.883 it reached just before the government's crisis measures kicked in on March 22. Those measures were brought in to help cushion drivers from the impact of rising oil prices linked to the conflict in the Middle East.

 

Back on March 20, the Spanish government held an extraordinary Council of Ministers meeting and agreed to cut VAT on diesel, petrol and other fuels down to 10%. They also reduced the special hydrocarbons tax to the lowest level allowed under EU rules, and brought in extra support for transport companies and farmers. These measures are due to stay in place until June 30 and seem to have done their job, putting a stop to ten consecutive weeks of price rises that followed the spike in oil prices after the Strait of Hormuz blockade.

 

Even with this week's drop, filling up isn't quite back to where it was a year ago. A full 55 litre diesel tank now costs around €88.82, which works out at about €14.13 more than the €74.69 it cost this time last year. Petrol drivers are paying around €83.6 to fill the same size tank, roughly €3.41 more than the €80.19 it cost twelve months ago.

 

It's worth remembering that despite all the ups and downs over recent months, both fuels are still nowhere near the record highs seen in the summer of 2022. Back in July that year, petrol hit €2.141 a litre and diesel reached €2.1.

 

Fuel prices in Spain are shaped by a mix of factors including taxes, oil prices, logistics costs and profit margins, and changes don't tend to show up at the pump straight away. There's usually a delay before shifts in crude oil prices filter through to what you pay when you fill up.