EU urges Spain to drop blanket 20-cent fuel discount in favor of targeted aid

The European Commission has urged Spain to abandon its universal 20-cent-per-litre fuel discount, arguing the aid is expensive and does not focus on households most in need. Ursula von der Leyen criticised such subsidies in the European Parliament, noting they boost demand, favour wealthier drivers and strain public finances, and suggested targeted measures like energy vouchers used in France and Romania. Spain’s current policy reduces the hydrocarbon tax by 20 cents in October, then to 13 cents in November and 6 cents in December, with a clause that could reactivate the larger cut if fuel prices rise more than 15 % year-on-year.

The discount applies to all consumer petrol and diesel purchases, while separate schemes support sectors such as agriculture, fishing and professional transport. The EU’s stance reflects broader goals to curb fossil-fuel use and accelerate a shift to cleaner transport, putting additional pressure on Madrid as the emergency measures near their end.