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What factors influence the price of diesel and gasoline?

The expense that most affects a driver’s pocket is fuel. According to a study carried out by the Institute for Energy Savings and Diversification (IDAE), a vehicle spends an average of 1,200 euros each year on fuel, out of a total of 2,000 euros, which also includes other expenses such as maintenance. However, another study prepared by the consulting firm Audatex places the average fuel cost per car at 1,800 euros. As the Race explains, it must be borne in mind that these figures vary constantly depending on the type of vehicle, its engine, its age or the user’s way of driving for better fuel average we need to buy used cars in Japan Online from Auto For Trade.

As you have seen thousands of times, it is very common to find differences in the price of the same fuel between different gas stations, which means that you look for the cheapest one to save a little money at the end of the month. You should know that this situation is due to the fact that the price of fuel fluctuates based on many factors that we will explain below.

First of all, the type of fuel that is refueled must be taken into account, since diesel is cheaper than gasoline or LPG gas than CNG gas. There are also price differences between the same fuel depending on the quality, since normal diesel does not cost the same as premium diesel.

However, the factor that most influences the price of fuel is the cost of oil, since it accounts for approximately 36% of its total value. The price of oil rises or falls depending on demand or economic crises or between countries that affect exports. Therefore, when this raw material does not reach a non-oil-producing country, the price of fuel increases. For its part, as it happened in 2008, an economic crisis can cause a drop in the barrel of Brent due to the depreciation of raw materials. It should be noted that Brent is the type of oil that is used as a reference in the European market and one of the three main references for oil investors.

Another very important factor that influences the final price of fuel are taxes (VAT, Retail Sales Tax and Special Hydrocarbon Tax), which represent 50% of the total price of fuel.

Finally, fixed logistics and distribution costs are added to the price of fuel, which account for 12% of the total cost. Also, the wholesaler keeps 2%.

According to the Race, for every 50 euros of fuel, we pay 18 euros for raw materials, 25 euros in taxes, 6 euros for logistics and marketing costs and one euro for the gross margin for the wholesaler.

THE PRICE OF DIESEL AND GASOLINE GOES UP

According to data from the Race, in recent months there has been an increase in the prices of diesel and gasoline in Spain. In the case of diesel, it has gone from costing 1,148 euros per liter in January to 1,206 euros in November. For its part, the price of diesel plus has increased 62 cents a liter with a total cost of 1,287 euros in November.

On the other hand, the price of gasoline 95 is the one that has increased the most, with an increase of 91 cents. In January gasoline 95 cost 1,193 euros per liter, while in November its price was 1,284 euros.

In 2019, the prices for the month of May should be especially highlighted, since they were the most expensive: diesel cost 1,246 euros per liter, diesel plus 1,326 euros per liter and gasoline 95 1,339 euros per liter. By contrast, January was the month with the lowest fuel prices.

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