Spain extends fuel tax relief as prices fluctuate

The Spanish government has extended fiscal aid for fuel to combat rising inflation and geopolitical tensions. Starting October 1, a decreasing scale of tax relief on the Special Tax on Hydrocarbons will be applied: 20 cents per liter in October, 13 cents in November, and 6 cents in December. A safeguard clause will restore the 20-cent discount if oil prices rise by more than 15%.

While these measures aim to mitigate costs, the Confederation of Spanish Service Station Entrepreneurs (Ceees) has criticized the relief as ‘disappointing and ineffective,’ arguing it fails to address the root causes of energy costs. Similarly, the Organization of Consumers and Users (OCU) noted that fuel prices have already seen significant increases due to international conflicts, with gasoline and diesel rising by approximately 30% and 34% respectively since February.

In Portugal, fuel prices are expected to see a slight decrease, with gasoline potentially dropping by 4.5 cents and diesel by 3.5 cents per liter in the coming week, though costs remain high due to European production capacities and import dependencies.