The National Commission of Markets and Competition (CNMC) has confirmed through a report what oil companies dramatically increased their gross margins after establishing the 20 cent discount. The ones that did the most were Cepsa and Repsol.
Specific, the average gross margin for diesel increased by almost 24% in Aprilwhile that of gasoline 95 did the same by 4.3%.
Cepsa, Repsol and BP, the ones that increased their profits the most
Margins increased 1.15 cents per liter for 95 gasoline and 4.98 cents for diesel. In the Canary Islands, the variation was much greater due to lower fuel taxation: the increase in margins was 7.8 cents per liter for 95 gasoline and 10.5 for diesel.
The CNMC report reveals that in April 2022, the month in which the mandatory discount of a minimum of 20 cents per liter came into force (0.15 euros assumed by the State), the service stations integrated into the BP distribution network once again set the highest average prices, followed by those of Cepsa and Repsolfor both fuels.
“The lowest PVP were registered, as usual, in independent facilities,” details the CNMC.
Specifically, the largest increases in gasoline 95 were registered in the independent facilities, Cepsa and Repsol, and the smallest ones in the DISA Peninsula stations (where the margin decreased), BP and other operators.
With regard to diesel A, the most pronounced increases took place in the networks of Cepsa, BP and Independientes, while the smallest were registered in the networks of Disa Península and other operators.
The Gross Distribution Margin is the difference between the price before taxes and the international reference price.
⚠️ Fuel prices in Spain have increased due to the 20 cent subsidy.
Specifically, the causal econometric analysis indicates that prices increased, on average, by 5 € cents, precisely the amount that the oil companies had to reduce.
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– Juan Luis Jiménez (@JuanLuis_JG) May 30, 2022
Teruel, Huelva and Lleida were the peninsular provinces with the greatest increases, while the least notable increases were registered in Valladolid, Álava and A Coruña.
This indicates that the discount of 20 cents increased the price of fuel in Spain, appropriating the producers of part of the subsidy, supported mostly by public coffers.
Juan Luis Jiménez, Ph.D. in Economics, considers that we are “using public money to increase the profits of oil companies, finance more for the rich and pollute.”
Already at the beginning of April, the network of Easy Gas gas stations filed a complaint with the CNMC against BP, Cepsa and Repsol for fixing prices and carrying out covert agreements.
And it is that Shell, DISA, BP, Repsol and Cepsa started a ‘discount war’ after establishing the 20-cent discount, aimed at their customers. Meanwhile, there are more and more voices warning that we will soon pay three euros for a liter of fuel.