Spain threatens oil companies as filling station prices continue to spiral upward

SPAIN’S Finance Minister, Nadia Calviño, has blasted a warning to oil companies who are hiking petrol pump prices despite a 20 cent per litre subsidy introduced on April 1.

Speaking on Thursday, Calviño, threatened not extend the measure beyond the original end date of June 30 if firms are found to have profiteered from the subsidy,

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

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

Consumer group Facua has already denounced 230 petrol stations across Spain who sneaked in price rises just before the subsidy started.

The average price of fuel has risen this week by 1.35% from what were already record highs last week.

A litre of diesel has an average price of €1.91 and petrol comes in at €1.87.

Since April 1, diesel and petrol has gone up by more than 2.5%, mainly down to rises of over 10 cents in the last fortnight, which have eaten up over half of the government subsidy.

“This is a time a time for all companies to be responsible, especially energy companies,” Calviño commented.

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