The Vice President of the Government of the Canary Islands and Minister of Economy, Manuel Domínguez, announced the start of this campaign, which aims to clarify the behavior of the fuel market on the islands. Previous reports commissioned by the Directorate General of Commerce and Consumption of the Government of the Canary Islands had already indicated anomalies.
The analysis reveals a structural asymmetry in the translation of international prices. While crude oil price increases are quickly passed on to consumers (within 48 to 72 hours), price reductions take considerably longer to be reflected (between 10 and 13 days), only partially passing on the decrease. This phenomenon, known as the 'rocket effect and feather effect,' directly harms families, self-employed individuals, and the overall Canary Islands economy.
Domínguez stated that the Executive's action responds to a "clear concern about the impact of this situation on citizens." "We were surprised that fuel prices rose almost immediately in the Archipelago, and therefore, we wanted to rigorously analyze what happened and whether we are facing normal market behavior or an anomalous situation," he affirmed.
The report also highlights a high market concentration, with four brands controlling 76.7% of the service stations in the Archipelago, and a significantly reduced presence of independent operators. In light of this scenario, the Vice President considers it necessary to act "with transparency and with inspection tools that allow for a detailed understanding of the price formation structure of the operators included in the sample."
The campaign will focus on formally requesting documentation from selected operators to obtain precise information about their pricing policies and determine if the observed differences are due to market inertia or factors requiring further action. The results will be forwarded to the Competition Defense Service.
Domínguez added that, "if this study indicates that there has been irregular conduct or abuse, the Government will act accordingly, because we will not overlook a situation that harms Canary Islands consumers." He also insisted that the measure responds to a clear priority: "defending the general interest in an area that directly affects the cost of living, mobility, and the competitiveness of Canary Islands businesses."
