Spain reinstates fuel tax cuts and subsidies as oil prices surge
The Spanish government has revived reduced VAT on fuel, lowered the special consumption tax and re-introduced per-liter discounts to curb the impact of rising oil prices.
In response to a renewed surge in international oil prices, Spain's Sánchez administration has re-implemented a suite of fiscal reliefs for motorists. The value-added tax on fuel has been cut to 10% from the previous 21%, and the special consumption tax on hydrocarbons has been postponed or reduced. Consumers will receive a sliding discount at the pump - 20 cents per litre in October, 13 cents in November and 6 cents in December - while specific subsidies are directed at transport operators, farmers and livestock producers.
These steps follow earlier measures introduced in March that were gradually withdrawn after the Iran-US ceasefire. The latest policy shift seeks to maintain Spain's fuel prices below the EU average, with gasoline at about €1.93 per litre and diesel at €1.92, both cheaper than the bloc's averages.
Why it matters
The policy helps Spanish households and key industries manage higher energy costs amid volatile oil markets.
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