Election Year or Fear!

[ramAnag]

The Spanish government doesnt load up the fuel price with about ? 0.53 fuel duty per litre and then another 20% on top for VAT. So out of your ? 1.59p per litre, some 80p isnt impacted by the raw oil / product cost. In Spain the fuel duty is around E 0.36 per litre (? 0.31) and 21% for VAT.

So if we take the tax impact off, and incorporate the fact that the landed product cost is cheaper in Spain due to delivery costs, those price differentials are fairly logical with about half of the pump price in UK not being impacted by supply/demand volatility for the fiel

Econ 1.01

Thanks. Think, but don’t understand why, it may be more complex. Just been told that one garage in Ashbourne is selling at 179.9 today.
The price of petrol in mainland Spain today would appear to be around 165.5 Euros and yet here in the Canaries it seems to be holding at around 1.29-1.33.
I do remember two or three years ago the Spanish government intervened, just after the Russian invasion of Ukraine I think, so that the price drivers paid was significantly lower than the advertised forecourt price.
Can’t explain any of it better than you but certainly the price here today is significantly lower than the mainland.

[ramAnag]

Thanks. Think, but don’t understand why, it may be more complex. Just been told that one garage in Ashbourne is selling at 179.9 today.
The price of petrol in mainland Spain today would appear to be around 165.5 Euros and yet here in the Canaries it seems to be holding at around 1.29-1.33.
I do remember two or three years ago the Spanish government intervened, just after the Russian invasion of Ukraine I think, so that the price drivers paid was significantly lower than the advertised forecourt price.
Can’t explain any of it better than you but certainly the price here today is significantly lower than the mainland.

Sorted. The Canaries are apparently included as part of a ‘Special Economic Zone’ which exempts then from certain taxes. So not as straightforward as first suggested but a pleasant surprise.