Rising Fuel Prices Raise Concerns for the Canary Islands Economy
Rising fuel prices linked to the conflict in the Middle East are causing growing concern in the Canary Islands, where the regional economy depends heavily on imported fossil fuels and maritime transport.
Authorities have warned that higher fuel costs could quickly translate into increased transport and logistics expenses, potentially pushing up the price of many everyday goods across the archipelago.
The president of the Cabildo of La Gomera, Casimiro Curbelo, has called on public administrations, particularly the Canary Islands Government, to closely monitor the impact of the international crisis and prepare contingency measures if the situation worsens.
Curbelo warned that the islands are “especially vulnerable” to disruptions in the energy market due to their geographic location and reliance on external supply chains. He noted that fuel prices have already risen by more than 10 cents per litre in just one week.
Fuel Subsidy Under Pressure
The sharp increase has raised questions about the effectiveness of the fuel subsidy currently applied in five of the Canary Islands, which was introduced to offset the additional costs associated with “double insularity”.
“In islands such as La Gomera, fuel has already gone up by more than 10 cents per litre,” Curbelo said. “Considering that the government subsidy is 25 cents per litre, part of that benefit is already being neutralised by the price increase.”
He suggested the scheme may need adjustments to ensure the discount continues to have a real impact for residents and businesses.
“The Canary Islands have an open economy that depends on the outside world. It is therefore essential to monitor what is happening and be prepared to respond if the situation continues over time,” he added.
Government Monitoring Situation
The Canary Islands Government says it is “closely monitoring” the consequences of the conflict in the Middle East and its effect on energy prices.
Regional Public Works, Housing and Mobility Minister Pablo Rodríguez confirmed that a meeting with the transport sector will be held in the coming days to discuss the rising cost of fuel and its potential impact.
His department is working alongside the regional Ministry of Economy, led by Manuel Domínguez, to assess possible measures aimed at protecting the Canary Islands economy. The Spanish central government is also monitoring developments as the international situation evolves.
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