On October 1, 2024, the Government removed the VAT reduction on certain basic products, which inevitably caused an increase in prices. basket price. This measure, which aimed to mitigate the impact of inflation and international crisesis ending after being extended several times since its initial implementation in January this year. The Government had approved this reduction in VAT, which resulted in a loss of income more than 440 million euros in the first quarter and a total of 1,700 million in 2023.
However, thanks to this initiative it was achieved control inflation of essential products. With the end of the VAT cut, food inflation is expected to increase by around one point. Now, foods that previously had 0% VAT will increase to 2%, while others, such as pastes and seed oils, will see an increase from 5% to 7.5%. Olive oil will maintain a 2% VAT until the end of 2024 and, in 2025, a VAT will be applied very low rate of 4%.
Olive oil prices in supermarkets
In LidlAlthough no exact price is listed on their website, it is estimated that a liter of extra virgin olive oil costs around 8.45 euros. On the other hand, Crossroads offers its extra virgin olive oil at a price of 9.11 euros per liter.
In Alcampothe liter of extra virgin olive oil is available for 8.93 euros, which positions it as a competitive alternative. In addition, Day presents its extra virgin olive oil “La Almazara del Olivar” at 9.13 euros per liter, a price that can be attractive for those who frequent this chain. In Mercadona, Hacendado extra virgin olive oil also has a price of 9.13 euros per liter.
Finally, in The English courtHojiblanca extra virgin olive oil can be purchased for 9.33 euros per liter, the most expensive of the options mentioned.
Medium-term forecasts
Gonzalo Bernardosprofessor of economics at the University of Barcelona, believes that the increase in VAT comes “very timely”, since prices are starting to fall due to the reduction in the food crisis and inflation.
However, he maintains that essential foods should have a 0% VAT permanently. According to him, the government could compensate for the tax loss with taxes on the richest, such as inheritance and wealth taxes.
Concerning olive oil, the economist affirms that its prices are in “free fall” thanks to the good prospects for the new harvest, which will begin in October. Despite the increase in VAT, Bernardos assures that this will not stop the fall in the price of oil.
The expectations in olive oil sector indicate that production will exceed that of the last two seasons, although it is estimated that it will not reach the 1.4 million tonnes initially forecast due to drought. As more accurate data is obtained, a more accurate prediction can be made regarding the original price reduction.
However, since the oil currently in stock has been purchased at high prices, no significant reductions are expected until these stocks are exhausted. Supply of new oil will start hitting the market starting in January, just as another VAT increase.
Shopping Tips
Olive oil is an essential ingredient Mediterranean cuisineavailable in different varieties.
He extra virgin olive oil It is recognized as the highest quality. This type of oil is obtained from the first pressing of the olives, without going through a refining process, which allows it to retain all the nutrients and beneficial properties of the fruit. With a fruity flavor and a low acidity level, less than 0.8%, extra virgin olive oil is particularly suitable for raw use.
On the other hand, the virgin olive oil It is also extracted from the first pressing of olives, but its quality is slightly lower. This type of oil can have an acidity of up to 2%.
Another relevant category is refined olive oilwhich is obtained from virgin olive oil subjected to a refining process. This procedure aims to eliminate defects and reduce acidity, resulting in a more neutral-tasting oil. Due to its less intense profile, refined olive oil is commonly used in cooking for frying and stewing.
Likewise, there is the olive oil which is often simply labeled as “olive oil”. This variant is a mixture of virgin olive oil and refined olive oil, which gives it an intermediate quality. It is generally priced lower than virgin oils, making it an affordable option for consumers.
