Spanish Energy Sector Reports Record Margins Amid Rising Inflation

• An analysis by the Spanish trade union CCOO reveals that energy sector profit margins have more than doubled since pre-pandemic levels.
• The refining sector is identified as responsible for 31% of the overall price increases observed in the second quarter of 2026.
• Major corporate sectors, including banking, real estate, and extractive industries, are recording historic profit margins, contributing to sustained cost-of-living increases for consumers.

Energy and Refining Sector Analysis

• The profit margin on sales for the energy sector reached a historic peak of 24.5% (four-quarter moving average), compared to approximately 11% during the 2018–2019 period.
• Companies have exploited geopolitical conflicts and supply chain bottlenecks to inflate refining margins, shifting these costs directly to families and businesses.
• Wholesale fuel trading also maintains margins exceeding 30%, as companies leverage market power to protect profitability despite rising procurement costs.

Corporate Profitability and Wage Disparity

• Overall corporate profits hit a record 97 billion euros in Q2 2026, with margin rates significantly higher than the 2009–2021 average.
• Banking institutions have achieved a record 29% margin on revenue, despite the current context of falling interest rates.
• Data highlights a widening gap between productivity and compensation:
  • Between 2018 and 2026, nominal value added per employee grew by 44%.
  • Average remuneration per employee rose by only 33%.
  • Gross margin per employee retained by businesses grew by 55%, signaling a highly unequal distribution of gains between firms and workers.