Repsol SA: customers will continue to benefit from the biggest discounts at its service stations in Spain
Repsol, amid international gasoline and diesel price tension - the main variable in determining fuel prices - will continue to support its customers and maintain the discounts at its more than 3,300 service stations in Spain.
Individual customers who use the free Waylet app will continue to benefit from a minimum discount of 10 euro cents per litre, in addition to the 20 euro cent discount offered by the Government from July 1 and throughout summer, a period with a large number of trips. The total price reduction at Repsol petrol stations amounts to 30 euro cents per liter of fuel, in addition to other usual discounts.
On the other hand, customers who visit Repsol gas stations and do not use Waylet will still receive a 5 cent discount on top of the 20 cent government discount. Therefore, in these cases, the total discount is 25 euro cents per litre.
For transporters, Repsol will maintain throughout the summer a minimum discount of 10 euro cents per liter for professional drivers holding the Solred card, in addition to the 20 euro cent bonus offered by the government, so the minimum discount will be 30 euro cents per litre. The offer is compatible with others already received by carriers and independents via this card.
Likewise, transporters and professionals who do not use Solred benefit from an additional discount of 5 euro cents per liter of fuel on top of the government’s 20 cents. Therefore, the price reduction in these cases is 25 euro cents per liter in total, also from 1 July.
Commitment to customers
These discounts are applied to the detriment of the company’s margins and reduced the after-tax profit of Repsol’s service stations in Spain to zero in April and May, the first two full months of the implementation of these measures to support the clients in an exceptional international environment. , alternating currentin a context of rising costs and unchanged tax pressure applied to petrol and diesel.
“Margins have been contained and have fallen noticeably at many service stations,” Cani Fernandez, president of Spain’s competition authority, CNMC, said last Friday at a public event, adding that the regulator is following ” very closely” the evolution of the margins and that the body she leads has not detected an “absorption effect” of this discount by higher prices.
Repsol was the first operator to set discounts for private and professional customers from April 1 in addition to the usual discounts that its customers have enjoyed for years and in addition also to the state bonus. From March 16 to June 30, Repsol estimates the total savings offered to its customers at 150 million euros at the rate of 10 or 5 euro cents per liter of discount, which, added to the usual discounts, amounts to 215 millions of euros. This effort, in line with Repsol’s commitment to society, has been paid entirely by the company and does not include the state premium of 20 cents per liter.
Exceptional international context
The supply and refining of oil and the supply of fuels to customers suffer from complications in Europe, not only because of the increase in the price of crude oil and petrol and diesel – on which trade is based on international references – a situation caused by the war in Ukraine and the partial ban on imports of raw materials and finished products, in particular diesel, from Russia, but also because of the reduced refining capacity.
Over the past decade, 24 refineries have closed in the European Union, representing more than 10% of the continent’s refining capacity, mainly due to low profitability and regulatory uncertainty. On the other hand, the consumption of gasoline, diesel and kerosene increased by 1.3% over the same period.
This mismatch between supply and demand has resulted in the rise of global benchmarks, based on a global dynamic that goes beyond the increase in the cost of the raw material, crude oil.
Operation of the refining market
In Spain, any operator can buy and sell gasoline and diesel on the international market. Repsol, for example, once the demand in Spain is covered, exports gasoline to the United States and diesel to France. Producing fuels in Spain avoids the current uncertainty of finding an alternative import supply to the Russian imports that other European countries suffer from. If there were no refining activity in Spain, fuel prices would be the same or higher. The absence of a national refining system would have a significant negative effect impact on the country’s trade balance and industrial employment, on which some 200,000 families currently depend directly.
This industrial activity, considered essential to the Spanish economy, experienced an environment of low or even negative margins during the worst months of the coronavirus pandemic. The Spanish refining companies of the Repsol group recorded operating losses of 857 million euros in 2020 and 2021.
As Spain’s leading refining operator, Repsol has invested around €1 billion a year in its facilities since 2008 to maintain competitiveness, increase efficiency and add new units to produce renewable fuels, such as biofuels which will begin production at its Cartagena refinery shortly. year.
Waylet, leading app in downloads
Waylet, download leader Waylet, the most downloaded free application in Spain for several days in March and April, allows customers to pay at any of the more than 3,300 Repsol service stations in the country, with features such as refuel without having to go to the cash register, manage the charging of electric vehicles, pay quickly and securely from your contactless mobile and pay for regulated parking in more than 22 cities. Additionally, more than 4,000 businesses have signed up to pay with Waylet, including El Corte Inglés, Burger King, Paradores, First Stop, La Casa de las Carcasas, Federópticos, and Petuluku.
Launched in 2017, Waylet is the leading mobility payment app in Spain and currently has 4.5 million registered users. According to its strategic plan, Repsol aims to have eight million 100% digital customers by 2025.
Repsol, leader in the quality and innovation of its products, has the largest network of service stations in Spain.