Why Is The Price Of Gasoline Going Up
The price of gasoline is undoubtedly an issue that is particularly present on the minds of drivers, all over the world. In Spain, increases in the price of gasoline occur almost periodically.
To understand what the system is, one must know that the causes that explain why the price of gasoline rises are varied ; they do not always have to do directly with the raw material. That is, if there is a drop in the price of oil, it does not mean that this will affect gasoline in the same way.
Other factors that also influence the price of gasoline are the euro-dollar exchange rate and the price of fuel.
Incidents in the countries of origin
The recent production cuts by oil exporting countries, also explain why raise the price of gasoline; the international situation has a great influence on this production.
Some production areas such as the United States have been affected by the recent wave of hurricanes. Added to all this is the increase in world consumption, due to the economic recovery that produces great instability.
What are the main factors that influence the price of crude oil
Petroleum is the product from which gasoline is made. The prices fluctuate all the time and the main reason is supply and demand of it. In addition, there are other factors that influence the price of crude oil; some of them are war conflicts, financial speculation and the rise or fall of currencies.
How and why does the price of gasoline go up
The price of a liter of gasoline is set, for the most part, at 60% by taxes. Crude only represents 40% of the final price of gasoline; This means that if the price of oil goes up, the price of gasoline will too.
If the price of oil falls, it will not necessarily be reflected in the gas stations. The lower the price of crude oil, the more taxes are paid per liter of gasoline.
In addition to VAT, gasoline pays the Special Tax on Hydrocarbons ; This tribute has three sections by which it can be differentiated: state, regional and special. The huge tax burden is the main reason why the price of fuel does not fall along with that of oil.
It should be noted that the currency exchange rate also has its influence on setting the price of gasoline. The crude is priced in dollars and the time of sale should be changed to euros. Therefore, the more the European currency strengthens, the difference in the price of oil and fuel will be greater.
Gasoline in Spain: one of the most expensive
The Ministry of energy of Spain has published that Spain is the second country in the European Union with the most expensive gasoline ; and this without including the taxes that are added to the price of the same. Despite these data, which can be alarming, the taxes paid on gasoline are not the most expensive.
Spain pays 54.4% rates, compared to the 63.5% average paid by the rest of the countries of the European Union. This makes transport costs even lower than the rest. Despite the increases in VAT and higher taxes, Spain has a lower tax burden than other European countries.
Service stations
Service stations or gas stations occupy an important place. It is there where the commercial exchange of gasoline with the user takes place. Each gas station takes a margin of gasoline for the service.
Analyzing the price of gasoline, the amount that each service station takes is also considered. The National Commission for Markets and Competition has pointed out that Spain is one of the EU countries where the most is earned per liter of fuel. On several occasions, the CNMC has sanctioned the exaggerated increase in margins of certain companies.
