Diesel will be much cheaper to fill up in September in Spain
Diesel drops 20 cents per litre in September: 8, 10 or 12 euros less per tank. Petrol is left out. Relief or an electoral gesture?
English · Original discussion in Spanish · Published
Diesel gets 20 cents cheaper in September: real relief or electoral gesture?
Diesel drivers in Spain have a reason to wait for September. The fuel discount will rise to 20 cents per litre, four times the previous cut, according to reports in the media. The Government justifies the reduction by the year-on-year rise in diesel prices in July, 15.7%, which would have exceeded the expected limits. The measure is dressed up as a shield against inflation. But the timing invites other readings.
How much do you save at the pump?
The figures are simple. A 40-litre tank saves 8 euros; a 50-litre one, 10 euros; and a 60-litre one, 12 euros per fill-up. The cut, however, has a catch: the extra 20-cent reduction applies only to diesel vehicles. Petrol is left out. A detail worth reading before heading to the petrol station.
The timing is no coincidence
The suspicion runs through the economic analysis: the measure arrives just as fuel consumption starts to fall after the holidays. Some point out that diesel always rises in summer and falls in September, and that the cut comes exactly when prices should ease for seasonal reasons. The awkward question is whether the discount responds to inflation or to an electoral calendar. With prices having soared before the measure, there is more to the move than meets the eye: August is charged at premium prices and the cut is announced for later. The doubt remains. If inflation justifies the reduction, why not apply it sooner?
Diesel drivers in Spain have a reason to wait for September. The fuel discount will rise to 20 cents per litre, four times the previous cut, according to reports in the media. The Government justifies the reduction by the year-on-year rise in diesel prices in July, 15.7%, which would have exceeded the expected limits. The measure is dressed up as a shield against inflation. But the timing invites other readings.
How much do you save at the pump?
The figures are simple. A 40-litre tank saves 8 euros; a 50-litre one, 10 euros; and a 60-litre one, 12 euros per fill-up. The cut, however, has a catch: the extra 20-cent reduction applies only to diesel vehicles. Petrol is left out. A detail worth reading before heading to the petrol station.
The timing is no coincidence
The suspicion runs through the economic analysis: the measure arrives just as fuel consumption starts to fall after the holidays. Some point out that diesel always rises in summer and falls in September, and that the cut comes exactly when prices should ease for seasonal reasons. The awkward question is whether the discount responds to inflation or to an electoral calendar. With prices having soared before the measure, there is more to the move than meets the eye: August is charged at premium prices and the cut is announced for later. The doubt remains. If inflation justifies the reduction, why not apply it sooner?
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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 (13 replies).
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