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Fuel prices have surged in recent weeks amid renewed conflict in the Middle East and experts warn the increase will not stay confined to farms for long. Agricultural diesel jumped 4.22% in just seven days to reach €1.620 a litre, up from around €1.291 at the start of July. Farming groups say they are now paying 48% more for fuel than a year ago.

 

Rafael Pampillón, an economist at CEU San Pablo University, believes diesel will "eventually find its way into the shopping basket", with farmers likely to push for subsidies in the meantime.

 

He points out that diesel powers both the tractors used in the fields and the trucks that transport fruit and vegetables to shops, and warns that Spain's inflation rate, currently at 4.6% against a European average of 3.2%, could climb towards 5% over the coming months, a period that also helps determine pension increases for 2027.

 

Farmers themselves are already feeling the squeeze. COAG calculates that filling a 300-litre tractor tank now costs €421.50, up €132 on the price in February, before the US-Iran conflict broke out. Even with the government's fuel discount still in place, the extra cost per tank comes to €68.10.

 

"It's impossible to continue producing at €1.70 per litre," said Juan José Álvarez of the farming association Asaja.

 

With the current support measures due to expire on September 30, farming unions Asaja, COAG and UPA have announced protests across Spain, and Agriculture Minister Luis Planas is meeting representatives today to hear their concerns. Andrés Góngora of COAG put the stakes for consumers bluntly:

 

"If we can't plant, they won't be able to consume." He warned that without further government support, the cost of living will rise as a result.

 

Farming groups are pushing for the fuel discount to be extended, along with direct aid to offset energy and logistics costs and structural tax changes such as raising VAT compensation for the sector from 12% to 15%.

 

 

Image: Magnific