Monopoly Fuels Change in the Spanish Petrol Market

Its little secret that petrol prices across the world are steadily on the increase, and as precious fossil fuels are in finite supply, areas where there’s heavy demand will naturally see the biggest increases. Europe as a whole is notorious for high fuel prices, but Spain (including the Canary islands) is somewhat of an anomaly.

Residents will be more than aware that fuel prices fluctuate drastically throughout the week in Spain, in fact routine EU research highlighted that, 70% of the time, fuel in Spain was cheaper on a Monday, returning to nearer its average weekly price on Wednesday – cue stampedes at Spanish petrol stations on Mondays!

This study has sparked an investigation by the Spanish government as to exactly why such a phenomenon occurs. Spain’s top three fuel providers; Repsol, Cespa and BP are to be the subject of the investigation, which is set to determine if there is any foul play at hand. As a side note, Spain went from one of the most expensive EU countries for fuel, to one of the cheapest!

In addition to this investigation, the Spanish Government are also taking steps to abolish the monopoly that the ‘big three’ currently have on the fuel market. To give some perspective on this situation, Spain currently has around 10,200 Petrol stations, this breaks down into;

• 2,500 are owned and operated by one of the ‘big three’
• 4000 are franchises, using the ‘big three’ name
• 4000 are ‘own brand’, this includes supermarkets

The idea behind this move is to reduce the amount of influence the big three have on fuel prices in the country, which will mean consumers have more opportunity to get cheap fuel consistently, rather than just when Repsol et al. decide to lower prices. The ruling will also mean that brands with a market share over 30% in a single Spanish province will not be permitted to open any more stations in that province.

Tenerife and the other Canary Islands can also expect to see these changes, and holiday makers will also feel the knock on effects, and not just those who use hire cars. Consider that with more competition and therefore cheaper petrol prices, airport transfers and taxis into town centres could be more affordable. This new move therefore could stand both residents and holidaymakers in good stead for the future.