Spain fuel prices rise as VAT returns to 21% level

On July 1, Spain’s gasoline price increased by an average of 8.5 cents per litre and diesel by 4.3 cents after the value‑added tax reverted to the standard 21 % rate, ending a three‑month reduced‑VAT period. The average gasoline price reached €1.529 per litre, up from €1.444 the day before, while diesel rose to €1.549 per litre from €1.506.

The government plans to lower the special hydrocarbon tax by 15 cents per litre in July, 10 cents in August and 5 cents in September, returning to normal levels in October. A re‑activation clause would raise the tax rebate to 20 cents per litre if fuel‑price inflation exceeds 15 %.

Industry estimates suggest the fiscal change adds roughly 10.1 cents to a litre of gasoline and 2.8 cents to diesel, reflecting the direct impact of the VAT shift on consumer fuel costs.