A sudden surge in fuel prices in Spain has become apparent to millions of drivers and businesses. In just one week, diesel prices jumped by 14% and gasoline by almost 8%. These are the fastest rates of increase since the start of the conflict in Ukraine. The main reason is the worsening situation in the Hormuz Strait, where disruptions in oil shipping have triggered panic on global markets. Spanish motorists and businesses are already facing higher costs, and transport companies are revising their rates.
According to the latest report from the Boletín Petrolero de la Unión, the average price of a liter of diesel has reached €1.645, the highest level since October 2023. Gasoline has also risen to €1.60 per liter for the first time since August 2024. Both fuels have been increasing for eight consecutive weeks. The report notes that diesel is once again more expensive than gasoline, a result of Europe’s reliance on diesel imports, mostly from Middle Eastern countries.
Causes of the spike
International diesel prices have surged by 48% since the start of US and Israeli military actions against Iran. This has completely offset the tax advantages of diesel in Spain. On the London commodities exchange, diesel futures exceeded $1,116 per ton. Since the conflict began, average diesel prices in Spain have increased by 24% and gasoline by 12%. According to the Ministry for Ecological Transition, diesel has risen by 24.6% and gasoline by 12.3%.
In Spain, gasoline is taxed 10 cents higher than diesel. However, the recent surge in oil prices has completely erased this advantage. Analysts call this situation a price reversal—diesel becomes more expensive than gasoline during crises. This is because diesel is used not only in passenger cars, but also in trucks, agricultural machinery, as well as for heating and power generation.
Economic impact
The blockade of the Strait of Hormuz, through which around 20% of the world’s oil exports pass, has heightened instability. The European market is especially sensitive to diesel supply disruptions. Rising diesel prices drive up transportation costs, which in turn affects the price of goods. According to russpain.com, if the situation drags on, inflation in Spain may accelerate due to higher transport expenses.
Diesel is also used as an alternative to liquefied gas in power generation. This is why demand for it remains high even as gasoline consumption drops. As a result, during every major crisis, diesel prices rise faster than gasoline, a trend already evident at filling stations across the country.
Global context
Instability in the oil market is a concern for industry not only because of price volatility, but also potential changes in the global supply and demand balance. If the Hormuz blockade continues, up to 20% of the world’s oil could be kept off the market, leading to further price increases and rising energy inflation.
In recent years, Spain has already faced similar situations. Following the outbreak of the conflict in Ukraine in 2022, fuel prices also surged sharply, leading to widespread protests among transport workers and higher food prices. Comparable price spikes occurred during the Middle East crisis in 2019. Each time, the economic impact was felt quickly: transport costs rose, goods became more expensive, and inflation accelerated. Now, the situation is repeating itself, but both the scale and speed of change have become even more pronounced.
