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What system is used to set gasoline and diesel prices?

Date: May 20, 2024 Time: 02:16:37

Gasoline fuel prices are not regulated, so each company can freely apply what it considers. However, there are regulations that limit the control over the costs that all gasoline must comply with in Spain. Imports or the fluctuation between the dollar and the euro are some of the conditions that determine the price of gasoline and diesel.

How fuel prices are set

The price of gasoline in the wholesale market is stipulated by the Government of Spain. This cost is the one that must be assumed by each company that wishes to purchase gasoline or diesel to sell to users. All associated taxes must be added to that amount. One of them is the special tax on hydrocarbons, which has a fixed price and varies between diesel and gasoline. Similarly, there is VAT, which in this case is 21% of the previous amount.

What factors influence the price of gasoline?

Oil production in Spain is residual, and that means that we have to import the vast majority of crude oil to satisfy domestic demand. This, logically, entails a significant extra cost for transportation. Normally, large oil tankers are used to make the trip from the producing countries.

However, there is something you should know: the available supply and market speculation affect the final price. OPEC (Organization of Petroleum Exporting Countries) brings together the main producers from around the world and has the ability to set their production. When this decreases, the price you have to pay for gasoline usually increases. Likewise, as the exchange rate between the euro and the dollar fluctuates, this has an impact on the import you pay for each liter of gasoline.

How to deal with the rising cost of gasoline

Using public transportation can help you combat the rising cost of gasoline, but you have other alternatives, such as car sharing. If you agree with your friends or family to travel together, you will be able to reduce a large amount of expenses together.

Fuel Saving Tips

While driving, there are many aspects that cause fuel consumption to skyrocket. One of the most significant is the condition of the tires. If you keep the pressure low, the contact surface increases and, with it, so does the consumption.

In the same way, it is recommended that you carry just the right load in the trunk. Remember that each extra kilo forces the car engine to work harder. And finally, you have to be careful with the use of the accelerator. Sudden changes in speed are the great enemy of efficiency when driving.

As you can see, fuel prices do not only depend on the gasoline you usually fill up with. Likewise, state regulations and the global economic situation have a quite relevant impact.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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