Fuel prices continue to rise in Spain. Consumers are already paying an average of more than 1.72 euros per liter of gasoline at pumps, 0.9% more than last week, according to data from the latest EU oil bulletin published this Wednesday. Diesel also continues to rise, reaching 1.86 euros, up 1.6%. These data are calculated with the amounts reflected at service stations between August 18 and 24. With these new increases, gasoline has risen by 19.9% since June, while diesel has risen by 23.8%. These increases occur amidst the stagnation of the war in Iran and with new measures put on the table by Washington to try to further economically isolate the Islamic Republic. This Monday, Treasury Secretary Scott Bessent announced new sanctions that include 60 individuals and entities in locations from Turkey to Hong Kong, as well as ships of the Iranian ghost fleet that distributes its oil.
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The cost of both fuels is getting closer and closer to its annual maximum. In the first weeks after the start of the war in the Middle East, a liter of gasoline was paid at 1.733 euros and diesel at 1.88 euros. These increases occur as numerous Spaniards return home after their holidays. In fact, the DGT will activate this Friday the last special traffic device of this summer, as 6.9 million displacements are expected this weekend.
However, the upward trend for diesel may slow down in the coming weeks. On Tuesday, the safeguard clause of the anti-crisis shield will be activated, which raises the reduction on the hydrocarbon tax for diesel to 20 cents per liter. This measure was activated after the INE published inflation data in July, a month in which diesel exceeded the 15% year-on-year growth barrier (it rose 15.7% compared to the same month in 2025). This reduction will not affect gasoline, as it remained below this 15% threshold (7.3%). This scheme was designed by the Government in the latest decree to try to mitigate the economic impacts caused by the conflict in the Middle East.
If these data are analyzed with the average figures recorded in the European Union, Spain continues to register lower amounts than the average for the Twenty-Seven as a whole, which rose to 1.94 euros per liter for gasoline, while diesel again exceeded the two-euro barrier (2.06). By country, the one reflecting the highest cost of gasoline is again Denmark (2.44 euros), while the Netherlands repeats as the territory with the most expensive diesel (2.38 euros). On the opposite side is Malta, which has kept prices frozen since June 2020 and has the lowest prices in the entire EU.
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The high costs of fuels are already showing effects not only on inflation data but also on the EU’s trade balance. In the second quarter of the year, the trade deficit of the Twenty-Seven (meaning Europe imports more than it exports) rose to 21.8 billion euros, the first time this negative balance has been recorded since the same period in 2023, according to data published by Eurostat this Tuesday. One of the main reasons for this result was the deficit in energy products, which increased from 71.3 billion euros in the first quarter to 101.1 billion euros in the second quarter, followed at a great distance by the balance recorded in raw materials (which increased from 7.9 billion at the start of the year to 9.4 billion between April and June).
Regarding inflation, the increases recorded in both Spain and the EU as a whole are primarily due to these two fuels. The National Institute of Statistics last week revised upwards general inflation in July to 3.6% year-on-year, one tenth more than estimated in the advance data and driven by fuel prices. In the case of the Twenty-Seven, the CPI rose one tenth in July, to 3%, according to Eurostat published this Wednesday. In the component analysis, energy prices again rose above 10%.
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