Spain and Guatemala brace for fuel subsidy cuts, gasoline prices set to rise sharply

In Spain, the Spanish Confederation of Service Station Entrepreneurs (CEEES) warns that ending the temporary fuel tax relief on 30 June could raise gasoline prices by up to 30 cents per litre and diesel by about 22 cents per litre from 1 July. The association says the VAT reduction, introduced on 22 March, had lowered gasoline by 15.7 % and diesel by 17.3 %. It urges the government to phase‑in any VAT increase to avoid a sudden price shock that could hurt tourism, transport workers and trigger inflation.

In Guatemala, the Ministry of Energy and Mines says the Q2 billion (approximately 2 billion quetzales) fuel subsidy that began on 1 May will be exhausted by the second week of July, after half the funds have been spent. Once the subsidy ends, gasoline prices will again follow international oil market fluctuations. Officials are reviewing options, including a possible targeted subsidy for the most affected groups, but no decision has been made yet.