Canary Islands face rising fuel and industrial energy costs

Fuel prices in Lanzarote reached significant highs during the first seven months of the year. According to data from the Canary Islands Government, 95-octane gasoline rose approximately 22% between January and July, while diesel (Gasóleo A) saw a more pronounced increase of roughly 26%, climbing from 1.193 euros per liter in January to 1.508 euros in July.

On a broader scale, the Canary Islands are experiencing high energy-driven inflation. In July, the archipelago recorded the second-highest year-on-year increase in the Industrial Price Index (IPRI) in Spain at 18.5%, a figure that more than doubles the national average of 9.2%.

This economic pressure is attributed to the islands' ultra-peripheral status and heavy dependence on imported petroleum-derived fuels for electricity generation. The isolated nature of the regional electrical system limits the ability to offset international market fluctuations, leaving the local industry particularly vulnerable to geopolitical tensions affecting energy markets.