Fernando Clavijo, President of the Government of the Canary Islands, detailed on Wednesday in the Parliament the initiative to conduct a random inspection of 78 service stations. These stations belong to the four main operators that control nearly 80% of the market in the islands. The measure is being taken after observing anomalous behavior in price setting, particularly following the conflict's onset in Iran and the closure of the Strait of Hormuz.
Clavijo denounced the significant difference in the speed at which oil companies adjust their prices. While price increases, linked to international crises, affect consumers within 48 to 72 hours, price reductions are considerably slower. According to the president, when international tensions ease or crude oil prices fall, the relief at the pump can be delayed by 10 to 13 days. This disparity was highlighted in response to AHI deputy Raúl Acosta.
“"It is reasonable for the impact to be felt within 48-72 hours for an increase, but when the time difference to lower it is multiplied by almost 10, it is evident that something is not working correctly."
The primary objective of this inspection is to determine whether this delay in price reductions is due to normal market functioning or a deliberate strategy to retain profits, harming consumers. Clavijo emphasized that the Canary Executive's action is not intended to "prejudge" but to "serve the citizenry and protect their rights."
The Canary Islands Government's analysis also points to a lower competition index in the fuel sector compared to the rest of Spain, particularly critical in the non-capital islands, where operations are under a near-monopoly regime, affecting residents of places like El Hierro. In light of this situation, the utility of the existing fuel subsidy in the green islands was reaffirmed.
The increased cost of gasoline has a domino effect on the Canarian economy, raising inter-island mobility costs, as well as those for the primary sector, industry, and hospitality, in addition to fueling inflation, which Clavijo described as the "greatest enemy of the middle classes."
The Government of the Canary Islands has committed to appearing before Parliament again once the inspections are concluded to report on the findings and take appropriate action against any detected irregular practices.
