Fuel and energy cost increases in Spanish islands

Spanish island territories are experiencing significant increases in fuel and energy costs, driven by geopolitical tensions and geographic isolation.

In the Balearic Islands, diesel and gasoline prices have risen sharply compared to the previous year. Joan Mayans, president of the Federation of Service Stations of the Balearic Islands, attributed this volatility to tensions between the US and Iran and uncertainty regarding the security of the Strait of Hormuz. There are concerns that a drop in sales may become evident once the summer tourist season ends.

Similarly, the Canary Islands have seen substantial price hikes, with 95-octane gasoline rising approximately 22% and diesel increasing by roughly 26% between January and July. The archipelago is facing high energy-driven inflation, recording an Industrial Price Index increase of 18.5% in July, which is more than double the Spanish national average. This vulnerability is linked to the islands’ ultra-peripheral status and their heavy reliance on imported petroleum-derived fuels for electricity generation.