Spain threatens oil companies as petrol station prices continue to soar

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Spanish Finance Minister Nadia Calviño has issued a warning to oil companies raising prices at the pump despite a 20 cent per liter subsidy introduced on April 1.

Speaking on Thursday, Calviño threatened not to extend the measure beyond the original end date of June 30 if the companies were found to have taken advantage of the subsidy,

Nadia Calviño said: “If companies do not do what they should, then the National Markets and Competition Commission (CNMC) will investigate any price increase that absorbs government aid.”

“We need to analyze which measures are the most effective and if operators increase prices to absorb the aid, then we will withdraw the measure,” she added.

Consumer group Facua has already denounced 230 petrol stations across Spain that snuck in price hikes just before the subsidy started.

The average fuel price rose this week by 1.35% compared to what was already a record high last week.

A liter of diesel costs on average €1.91 and petrol €1.87.

Since April 1, diesel and petrol have risen more than 2.5%, mostly for increases of more than 10 cents in the past fortnight, which have eaten up more than half of the government subsidy.

“It’s a time for all companies to be responsible, especially energy companies,” Calviño commented.

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