Why is the price of fuel rising so much?

We’re sure that in recent weeks you’ve been seeing how the price of fuel keeps going up. So much so that you’re going back to public transport because a litre of petrol is almost more expensive than a metro ticket. If your car, like mine, runs on 98, it’s best not to even take it out of the garage. If we start doing the maths, filling your car’s tank can cost between 15 and 30 euros more than last year but, what is happening that prices keep on rising?

The price of petrol has already exceeded 1.54 euros/litre, but diesel is not far behind, and at some petrol stations prices of over 1.42 euros/litre can be seen. According to experts, there are three fundamental reasons that explain the very notable increase in fuel prices: rising demand, the price of oil and even tax rates.

The three fundamental factors affecting the price of fuel

The Covid-19 pandemic reduced mobility across the world, which resulted in a fall in demand for oil for the car sector. Consequently, producers cut production to adjust to the new needs. Over the past summer, drivers went back to their usual mobility, so demand increased again, but production was not changed.

The price of oil is another factor: the rise in fuel prices is a consequence of the increase in the price of a barrel of Brent, which is the benchmark in Europe. In the last week of January, the value of crude exceeded 90 dollars, a price not seen since 2014. Taxes also play a part in the rise in fuel prices. The price of oil accounts for 40% of the cost of a litre of fuel. Although the Government plans to raise the tax on diesel, Spain has the lowest fuel taxes in the European Union.

Which day is the best to refuel?

Although you may think it’s silly, there is a notable difference between refuelling on a Monday or on a Saturday. According to data published in the European Union Oil Bulletin, petrol is sold on average at 1.55 euros/litre and diesel at 1.44 euros/litre. Some sources have claimed that “distribution brands tend to take advantage of collective mobility patterns to adjust their commercial policies, so that on the days of highest demand prices are higher”.

Therefore, if you need to refuel, ideally you should do it on Monday. Prices are at their lowest on these days. As the week goes on, figures keep rising until Saturday, the day when fuel is most expensive. Nevertheless, you can always look for the cheapest petrol station in your area.