Fuel costs for drivers in Mallorca continue to attract attention following recent instability in international oil markets linked to tensions involving Iran. Across the island, the gap between the cheapest and most expensive filling stations can exceed ten pence per litre, meaning drivers who shop around may reduce their regular fuel bills. A price map included with this report illustrates where fuel is currently cheapest, highlighted in dark green, and where drivers are likely to pay the most, marked in red.
Energy specialists say a range of global influences are affecting prices, including political tensions in oil-producing regions and movements in the international benchmark Brent Crude. These factors determine the base cost of fuel before it reaches local forecourts. However, the price drivers ultimately pay is not identical everywhere, as individual petrol stations operate with different pricing policies and running costs, which can create noticeable variations even between stations located close to one another.
Lower prices are often found at filling stations on the outskirts of Palma and in several inland municipalities such as Inca, Manacor and Sa Pobla. By contrast, forecourts situated in busy tourist zones, near the airport or in central parts of Palma tend to charge more. Higher property costs and a steady flow of visitors who may be less sensitive to price differences are among the reasons commonly cited for this pattern.
Several elements combine to determine the cost of each litre of petrol or diesel. The starting point is the global crude oil price, followed by the cost of refining crude into usable fuel. Taxes imposed by the Government of Spain and regional authorities — including the Special Hydrocarbon Tax and Value Added Tax — make up roughly half of the final pump price. Distribution also plays a role, as fuel must be transported from refineries to storage facilities and then delivered to individual service stations.
Retailers then apply their own margins depending on business strategy and operating expenses. Large oil brands and independent operators alike consider staffing, maintenance and additional services when setting prices. Lower-cost stations, commonly located in industrial estates or on the outskirts of towns, often reduce margins in order to attract a higher volume of customers.