Fuel war on the horizon for motorists Spanish oil companies fight for customers
Oil companies are entering a fuel price war, vying for customers by offering motorists more discounts at the pump.
Amid rising fuel prices in Spain – and of course throughout Europe – it looks like a fuel price war is about to break out between the major oil companies. Repsol and Cepsa – and soon, probably also BP – are stepping into the market as the summer getaway begins, with millions of drivers having to put fuel in their vehicles at the best price.
As reported last Friday, July 1, by epe.es, the Spanish government has extended the discount of 20 cents on a liter of fuel until the end of the year. As gasoline and diesel prices reach historic highs, fuel suppliers are looking for ways to lure motorists to their pumps.
Repsol has already taken the first step by announcing that it is extending the discount offered at its 3,300 service stations in the country until the end of the summer. Drivers can then take advantage of discounts of up to 25 or 30 cents. The company is offering an additional five cents per liter rebate on top of the government 20 cents.
Motorists who sign up for Repsol’s “Corporate Waylet” payment program can get an additional 10 cents discount. That brings the total rebate to 25 or 30 cents per litre.
Cepsa went even further and last Friday, July 1, decided to extend the additional discounts not only during the summer, but until the end of the year. Spain’s second-largest oil company is offering up to 25 or 30 cents depending on whether or not the consumer is signed up for its loyalty program.
BP is currently offering motorists a discount of five cents through its loyalty program and another five for refueling with over 40 liters of specific fuels. An announcement is expected from the company, possibly even today, Monday July 4, where it will also expand its program.
The government’s 20 cent rebate has already been diluted by ever-increasing prices. A Repsol spokesperson said: “These discounts are applied to the detriment of the company’s commercial margins and have reduced the result of Repsol’s service station activity in Spain to practically zero”.
A study was recently conducted by the National Markets and Competition Commission (CNMC), the body responsible for monitoring the trading practices and margins of oil companies. He analyzed whether the 20 cent discount actually reached the consumer.
In its results, the CNMC reports that in general, the sector applies the discount correctly. It detected suspected irregularities in only 100 of the 11,800 petrol stations analyzed in Spain, as reported theopinionofmalaga.es.
Thank you for taking the time to read this article. Don’t forget to come back and check it out The weekly euro news website for all your up-to-date local and international news and remember, you can also follow us on Facebook and instagram.