Balearics fuel hits €2.05 as 20-cent cut urged

Petrol and diesel now cost about €2.05 a litre in the Balearic Islands. In Palma on 16 September, business federation Pimem called on the Government to restore a 20-cent-per-litre reduction. Its vice-president, Rafel Matas, said prices crossed €2 a litre about two weeks ago.

Pimem says the move is already late, arguing that rising fuel bills are squeezing companies and private individuals. Matas wants support strengthened immediately. The current reduction stands at five cents for petrol and 20 cents for diesel, which he considers inadequate.

Matas does not expect prices to fall quickly. He said events in the Middle East and problems transporting crude oil and refined products are shaping the market, with prices likely to hold steady or edge higher.

Fuel is usually a little more expensive in the Balearics than on the mainland because of island logistics costs, Matas added. Petrol stations are still handling high volumes, but their margins are narrowing, placing growing pressure on the businesses.

Topics: Economy

Source: Europa Press / Mallorca.com