Fuel prices shift in Spain and Portugal amid tax changes and global tension

Fuel prices in Spain and Portugal are experiencing shifts driven by fiscal policies and geopolitical tensions. In Spain, gasoline and diesel prices have broken a multi-month rising trend, falling by 4.64% and 0.88% respectively. This decline follows the implementation of a government tax relief measure that increased discounts to 20 cents per liter. However, despite this weekly drop, fuel costs remain significantly higher than they were a year ago. Additionally, the European Union has expressed pressure on the Spanish government to eliminate these fuel discounts, labeling them counterproductive.

In Portugal, forecasts from the Automóvel Club de Portugal (ACP) and Anarec suggest divergent trends for the upcoming week: gasoline prices are expected to rise by approximately five cents per liter, while diesel prices may decrease by about one cent. These fluctuations are heavily influenced by global instability, including the conflict in the Middle East and tensions involving Iran, which impact oil trade through the Strait of Hormuz. Global crude oil benchmarks, such as Brent and WTI, continue to reflect these geopolitical risks.