Petrol just broke €2 a litre in Spain, and 11 straight weeks of rises say it won’t stop there

Petrol prices in Spain have recently surged past the €2 per litre mark, with 11 consecutive weeks of increases showing no signs of stopping, according to Euro Weekly News. Some service stations now charge over €100 to fill a family car, and the entire nation is feeling the impact. With the government discount set to end at the end of September, drivers have little reason to believe this is the last increase.

Across Spain, the €2-a-litre barrier has already been broken, particularly in Aragón, where more than 150 stations have crossed the threshold for regular petrol. In Menorca, five most expensive stations are charging more than €100 for a standard family car, highlighting the significant price gaps that exist between stations even within the same city.

The national average price for regular petrol reached €1.866 a litre on September 17, marking its 11th week of increases and a 2.88% rise in the past week alone. Diesel prices, at €1.834 a litre, also resumed climbing after a brief dip, with a 2.17% increase over the same period. This surge can be attributed to geopolitical factors, such as the surge in Brent crude to over $107 a barrel following attacks in the Strait of Hormuz and Saudi Arabia's closure of the Yanbu pipeline.

Spain relies heavily on oil imports, so such shocks reach Spanish pumps within days. Currently, drivers are benefiting from a government discount of 20 cents a litre on diesel and 5 cents on petrol, which is set to expire on September 30. Without this discount, industry estimates suggest diesel could rise by up to 24 cents a litre, reaching €2.08, while petrol could add around 6 cents, reaching around €1.92 on average.

With the discount still active until the end of September, filling up before then provides a cheaper rate. However, drivers must be vigilant, as the price gaps between stations are unusually wide, and comparing multiple stations is crucial, especially for those on the islands or in rural areas with limited public transport options.

Despite the recent surge, Spain remains below the EU average price of €2.063 a litre for petrol and €2.158 for diesel. UK drivers, on the other hand, are paying closer to Spain's prices, with petrol at 168.14 pence (approximately €1.96 a litre) and diesel at 190.72 pence (around €2.23 a litre). Analysts had predicted fuel prices in Spain would reach €2 a litre by 2027, driven by EU carbon-trading costs for fuel suppliers.

However, that threshold has now been crossed early, leaving drivers uncertain about the potential increase in October. The government has not yet announced whether it will extend the current discount before it expires, leaving drivers in the dark about how much worse the situation may get.