Independent petrol stations across Catalonia are struggling with extreme price volatility and tighter margins three months into the conflict in Iran, according to industry leaders. While major refiners have seen their shares rise, smaller operators, from wholesalers to local service stations, are finding it difficult to make clear medium-term forecasts.
“There are no certainties,” Miguel Payá, general director of Meroil group, told ARA. The petrol sector is complex, with each station facing unique challenges. Ramon Fitó, owner of Fitó service station in Badalona, Catalonia's oldest, explained that his single location and limited storage capacity prevent him from speculating on product prices. This contrasts with larger operators who have commercial and storage capabilities.
Adapting to Market Pressures
All companies without their own refineries have seen margins tighten. “We pass on prices day by day. And, obviously, we have been forced to buy a more expensive product,” Payá observed. Luis Nieves, president of Nieves Energia, believes small suppliers will need to be “much more precise in the financial management” of available product. He recommends securing supply contracts with reasonable terms to optimise resources.
Extreme volatility is the biggest risk for petrol stations. Ramon Puigfel, general director of Puigfel Carburants and president of the Provincial Association of Service Stations of Barcelona (APESBcn), explained that daily price increases of 6, 7, or 10 cents made the environment very difficult. His company has an exclusive supply contract with Repsol, but daily business has still been affected by public statements from figures like Donald Trump or the Iranian government. “If a sharp price drop caught you with full tanks, you were in trouble,” he recalled.
Stations have found themselves selling with much lower margins than desired to maintain sales volume. Fitó noted that there were times when they lost money. “If you adapt to wholesale prices by raising petrol two cents more than the station next door, people leave. You cannot exit the market,” he said.
Shifting Consumer Behaviour
The price increases have significantly impacted independent operators. With costs tied to daily crude oil benchmarks, operators have observed both sharp drops in purchases and new refuelling patterns. Nieves believes consumers have become “much more scrupulous when deciding how much to pay and at which station to refuel.” Josep Castany, head of Sustainability and Energy at EsclatOil, the fuel segment of Bon Preu group, confirmed that consumer price sensitivity has become very high. “The customer has assumed that news extending the conflict means higher prices,” Castany said.
Meroil identified that most end-users now put less petrol in their tanks but visit service stations more often. This allows them to avoid days with the highest prices. Fitó also reported “income drops” as customers opted for lower-cost alternatives. “In petrol crises, people put in less petrol, save on outings, or choose low-cost products,” he commented.
Government Measures and Future Outlook
Consumer behaviour has stabilised following the reduction of VAT on fuels from 21% to 10% and the cut to the minimum European hydrocarbon tax. “This has helped contain the final price,” Puigfel said, noting it revived consumption. Industry sources praised the direct application of the reduction to taxes liquidated by stations, rather than a price bonus, which caused issues during the Ukraine war due to unprepared systems.
However, the market's situation after 30 June, when these reductions are expected to end, remains unplanned. Unlike 2022, when the market quickly absorbed the effects of the Russian oil blockade, Payá warns that “high prices will continue.” He explained that the Strait of Hormuz remains closed, and many refineries and oil assets have stopped. “The oil from that region has no alternatives: the product that does not leave there, does not leave anywhere,” Payá concluded. Castany anticipates that “the market will continue to show volatility” in the short and medium term.
Supply Chain Observations
Despite alerts from the International Energy Agency, which used strategic reserves, petrol companies have not noted any supply risk in recent weeks. The Strait of Hormuz accounts for 20% of global oil traffic, but crude from that region primarily goes to China, South Korea, and other Asian powers. “It has affected us little in that sense. Price tension has come because more countries have been competing for less oil supply,” Puigfel reasoned.
Final sellers, however, did detect “more conservative” periods from their suppliers, especially during the most intense moments of the conflict. Puigfel believes this cooling was more due to “forecasts of logistical problems” than an actual lack of petrol. “Initially, everyone wanted to fill tanks, and there was a moment when there was no transport for all the product requested,” he recalled. Nieves minimised macro effects in Spain, stating that independent actors “have had to turn to existing national refining.” Outside Spain, “the situation is much more complicated,” with the search for alternative suppliers causing “even more market tension.”
