# Iberian agricultural fuel cost protests

> Live situation record from CLSTR: https://clstr.news/situations/iberian-agricultural-fuel-cost-protests
> Updated: 2026-09-04T16:00:44.000Z. Sources: 9. Developments: 3.

Agricultural producers in Portugal and Spain continue to face economic strain due to rising diesel prices and structural disadvantages.

In Spain, the union Unió de Pagesos, a member of the Unión de Uniones (UdU), is demanding the reinstatement of a 10% VAT rate on agricultural diesel. The union notes that the return to a 21% VAT rate on July 1 has neutralized previous discounts, contributing to a 25% increase in fuel prices compared to levels prior to the Middle East conflict. Farmers warn that these costs may lead to higher consumer food prices and are requesting the application of the minimum special harmonized EU tax.

In Portugal, the Confederation of National Agricultural Cooperatives and Agricultural Credit (Confagri) previously highlighted a discrepancy in agricultural diesel subsidies of approximately 20 cents per liter compared to Spain. 

In response to competitiveness concerns, the Portuguese Government has approved extraordinary support, including resuming a 10-cent per liter discount on colored and marked diesel through December. This measure is expected to cost the State Budget more than 15 million euros. However, the Confederação dos Agricultores de Portugal (CAP) has called for significantly higher aid, suggesting between 170 and 200 million euros is required. CAP Secretary-General Luís Mira also highlighted rising fertilizer prices and noted a major disparity in support, stating that while Spain has allocated approximately 1.1 billion euros for fertilizers, Portugal has provided 26 million euros.

Prime Minister Luís Montenegro has since announced the extension of the extraordinary support measure for the agricultural and forestry sectors, providing the 10-cent discount per liter of colored diesel until December 31. The Portuguese government is also considering extending similar support to other sectors, including transport, taxi drivers, firefighters, and social solidarity institutions (IPSS), with decisions expected in the coming week.

## Timeline

### 2026-09-04: Portuguese farmers demand relief over rising production costs

Portuguese agricultural groups are demanding government action to address high production costs and a 20-cent per liter diesel subsidy gap compared to Spain to ensure sector competitiveness.

2 sources. https://clstr.news/cluster/portuguese-farmers-demand-relief-over-rising-production-costs

### 2026-08-27: Spanish farmers demand reduced VAT on agricultural diesel

Spanish farmers are demanding a return to a 10% VAT rate on agricultural diesel to offset rising fuel costs and the impact of the Middle East conflict on production expenses.

3 sources. https://clstr.news/cluster/spanish-farmers-demand-reduced-vat-on-agricultural-diesel

### 2026-08-25: Portuguese farmers demand action over rising agricultural diesel costs

Portuguese farmers are facing intense economic pressure from rising agricultural diesel prices and delays in government subsidy payments, particularly in the Serpa region and the Azores.

5 sources. https://clstr.news/cluster/portuguese-farmers-demand-action-over-rising-agricultural-diesel-costs

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Cite as: Iberian agricultural fuel cost protests. CLSTR, https://clstr.news/situations/iberian-agricultural-fuel-cost-protests