Spain raises diesel tax relief to 20 euro cents per liter from September 1

en.Wedoany.com Reported - The Spanish government will raise the hydrocarbon tax relief applicable to diesel from the previous 5 euro cents per liter to 20 euro cents per liter starting Tuesday, September 1. The increase was triggered because diesel prices rose 15.7% year-on-year in July, exceeding the 15% threshold stipulated in the relevant decree, which automatically activated the safeguard clause in the anti-crisis response plan.

By contrast, gasoline rose 7.3% year-on-year in July, below the 15% threshold, so it remains on the regular phase-out schedule, with a relief of 5 euro cents per liter in September. Spain's Ministry of Economy (Ministerio de Economía) stated that the mechanism operates in a proportionate manner, strengthening protection only where price pressures justify it, and considers that the latest anti-crisis royal decree has a protective approach adapted to the evolving Iran conflict, with prudent design that allows protection levels to be raised again if adverse scenarios re-emerge.

The remaining anti-crisis measures continue to be implemented under the same royal decree. The Ministry of Economy stated that the first response plan launched on March 20 and the subsequent plan approved by the Council of Ministers (Consejo de Ministros) at the end of June are both working, with the main goal of cushioning the impact of external shocks on inflation and household purchasing power. The Ministry estimates that these measures have reduced inflation by an average of 1 percentage point in recent months, cushioning more than 60% of the price increases caused by the external shock of the Iran war. The department, led by Carlos Cuerpo, also stated that the government will maintain communication with social partners and affected industries, carrying out continuous monitoring of the impact of the war on the Spanish economy.

Preliminary data released by the National Statistics Institute (INE) last Friday showed that the year-on-year inflation rate in August rose to 4.3% from 3.6% in July, up 0.7 percentage points from July, the highest level since February 2023 and the first time it has exceeded 4% since April 2023. The statistics institute attributed the August inflation rebound to rising prices of fuels and lubricants for personal vehicles, as well as changes in food price trends (whose decline was smaller than in August 2025). The Ministry of Economy noted that overall inflation in August stood at 4.3% year-on-year, mainly due to the persistent energy shock caused by the Iran war and rising fuel prices.

The aforementioned 4.3% figure is preliminary, with final data to be released on September 15, which will reflect in greater detail the contribution of each product in the shopping basket to the August price increase.

Regarding fuel prices, prices rose for the eighth consecutive week last week, accumulating a gain of nearly 24% since the policy reducing VAT relief to 10% expired in early July, hitting summer highs during the August return-trip peak. Specifically, the average price of diesel per liter rose 1.8% week-on-week to €1.861, the highest level since mid-April; the average price of gasoline per liter rose 1.55% week-on-week to €1.723, a high since March. After these increases, diesel prices have accumulated a gain of more than 23.7%, while gasoline prices have risen 19.8%. These price figures come from the EU Oil Bulletin (Boletín Petrolero de la Unión Europea) reviewed by Europa Press.