Diesel hits 2 euros: Spain shrugs it off this summer
Diesel has already topped 2 euros at many Spanish petrol stations. Between the World Cup and cold beer, nobody is protesting. What will happen in September?
English · Original discussion in Spanish · Published
Diesel at 2 euros: the summer of 'no big deal'
The price of a litre of diesel has broken the psychological barrier of two euros at numerous Spanish petrol stations. While summer, the World Cup and cold beer distract public opinion, the energy bill is soaring without so much as a trucker's horn or a driver's complaint being heard. But how long will this uneasy calm last?
The price reality: 1.999 euros at some stations, 1.70 at others
Diesel prices are already approaching 2 €/litre in certain areas, according to recent data. Meanwhile, it can still be found at 1.70 € at low-cost stations, but the trend is upward. The recurring argument is that more than half of the price is taxes, which opens the door to fiscal measures to ease the burden on citizens' wallets. Yet social mobilisation is conspicuously absent.
Anaesthetised by summer and football
The explanation for this passivity has a name: the triple 'a' of August — alcohol and good cheer. The average consumer seems to have parked their indignation, trusting that September will bring the real bill. As one analysis puts it, 'when September comes we'll see how the bills get paid, but hey... for now, let's enjoy ourselves'. This behaviour recalls the psychology of financial procrastination: avoiding reality until the wallet really starts to hurt.
The moment of truth: October and the 'broken-piggy-bank'
Forecasts suggest the rise will continue in the coming months, with the arrival of cold weather and increased demand for heating. There is talk of a possible 'wallet-breaking' moment in October, when strategic reserves start to run low and the price of a barrel soars. The dilemma is whether the Government will opt for compensatory measures or whether people will start drastically cutting back on car use.
Spaniards are already cutting out 'pointless trips' by car, but the big change in habits has yet to come. When diesel broadly exceeds 2 euros, many will be forced to leave the car at home. The question is whether the social reaction that is missing today will come then, and not before. We shall see.
The price of a litre of diesel has broken the psychological barrier of two euros at numerous Spanish petrol stations. While summer, the World Cup and cold beer distract public opinion, the energy bill is soaring without so much as a trucker's horn or a driver's complaint being heard. But how long will this uneasy calm last?
The price reality: 1.999 euros at some stations, 1.70 at others
Diesel prices are already approaching 2 €/litre in certain areas, according to recent data. Meanwhile, it can still be found at 1.70 € at low-cost stations, but the trend is upward. The recurring argument is that more than half of the price is taxes, which opens the door to fiscal measures to ease the burden on citizens' wallets. Yet social mobilisation is conspicuously absent.
Anaesthetised by summer and football
The explanation for this passivity has a name: the triple 'a' of August — alcohol and good cheer. The average consumer seems to have parked their indignation, trusting that September will bring the real bill. As one analysis puts it, 'when September comes we'll see how the bills get paid, but hey... for now, let's enjoy ourselves'. This behaviour recalls the psychology of financial procrastination: avoiding reality until the wallet really starts to hurt.
The moment of truth: October and the 'broken-piggy-bank'
Forecasts suggest the rise will continue in the coming months, with the arrival of cold weather and increased demand for heating. There is talk of a possible 'wallet-breaking' moment in October, when strategic reserves start to run low and the price of a barrel soars. The dilemma is whether the Government will opt for compensatory measures or whether people will start drastically cutting back on car use.
Spaniards are already cutting out 'pointless trips' by car, but the big change in habits has yet to come. When diesel broadly exceeds 2 euros, many will be forced to leave the car at home. The question is whether the social reaction that is missing today will come then, and not before. We shall see.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (46 replies).
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