Fuel price surges drive inflation and transport costs in Spain, Argentina, and Peru

Rising fuel costs are exerting significant pressure on inflation and transportation sectors across several regions.

In Spain, diesel prices have surged by over 15%, prompting the government to activate a safeguard clause to increase tax discounts to 20 cents per liter. This rise in diesel, which is outpacing gasoline, is attributed to high demand for freight transport and geopolitical tensions affecting energy markets. Consumer groups like FACUA have criticized current measures, noting that price differences between stations can reach 70 cents per liter.

In Argentina, super gasoline prices have increased by 558% over two and a half years, while average private salaries rose by approximately 311%. This has resulted in a 38% loss in fuel purchasing power. Despite record domestic production from Vaca Muerta, internal prices remain aligned with import parity and tax structures, creating a cascade effect on logistics and general goods prices.

In Peru, although vehicle fuel prices saw a monthly decrease in July, they remain 17.8% higher than the previous year. This sustained cost is driving up transportation expenses, which rose 18.2% year-on-year, contributing to inflation levels that exceed the central bank's target range.