The lines of cars with Spanish license plates at the gas stations in Gibraltar, refueling to take advantage of lower prices in the British colony, have been a constant for years. Almost since the Border was opened to vehicle traffic in 1985. But the situation has just taken a turn.
Gasoline and diesel prices in Gibraltar have experienced a significant increase since the beginning of the year, to the point where prices are now higher than those at the low-cost gas stations in La Línea and San Roque. It is no longer cost-effective to enter to fill up, and the most immediate consequence has been the disappearance of Spanish cars at the pumps.
This situation occurred after the conclusion of the discount implemented by the Gibraltar government in April 2022 to mitigate the effects of the general rise in prices in the context of the war in Ukraine. In Gibraltar, the discount passed on to end-users came from a reduction in the import duties on these products, which ended with the change of the year.
In practical terms, the discount on diesel was 15 pence, while for 95-octane gasoline, it was 25 pence.
With the bonus ending (benefiting drivers on both sides of the Border without distinction), the real product price has emerged. Gibraltar's gas stations do not have market capacity to compete with low-cost pumps, which apply lower prices due to the volume of purchases for a larger network distributed throughout the country.
This week, it is possible to refuel diesel in La Línea at 1.339 euros and at 1.315 euros in Campamento (San Roque), while at two gas stations in Gibraltar, prices are at 1.512 and 1.516 euros, as verified by Europa Sur.
The same applies to 95-octane gasoline, as prices in La Línea and Campamento are 1.455 and 1.425 euros, respectively, compared to 1.479 and 1.481 euros in Gibraltar.
The Gibraltar government has emphasized that the discount was applied for a longer period than initially planned "to alleviate the increase in the cost of living in other consumer products" and, in particular, the rise in fuel costs.
Despite the increase, the Gibraltar government has noted that local suppliers have increased prices, albeit to a lesser extent than the discontinued discount, so local suppliers have absorbed part of the cost increase.
