Spanish industry faces 7.4 billion euro energy cost surge

The Alianza para la Competitividad de la Industria Española has warned of a severe economic impact on the national manufacturing sector due to the energy crisis stemming from the conflict in the Persian Gulf.

Estimates suggest that rising gas and electricity prices could result in an accumulated extra cost of approximately 7.4 billion euros for Spanish industry from the start of the conflict through the end of the year. Specifically, gas price increases are projected to cost 4.22 billion euros, while electricity costs could rise by 3.175 billion euros.

The Alliance, which represents 60% of Spain's Industrial Gross Product, has called for urgent public measures to protect industrial competitiveness, investment, and employment, noting that 70% of the economic impact is expected to occur between September and December.