Spain has warned companies it will not tolerate profiteering from the ongoing energy crisis linked to the war in Iran, as new measures come into force to keep prices in check.

Under a decree approved by the Council of Ministers and now in effect, regulators will be given stronger powers to monitor and punish businesses that fail to pass on tax cuts to consumers.

Economy Minister Carlos Cuerpo said authorities are watching closely to ensure companies do not take advantage of the situation.

‘We are looking at this in detail to avoid any kind of enrichment in a situation as tragic as the one we are living through,’ he said.

The government said tax relief designed to ease the burden on households must translate into lower prices, not higher profit margins.

The National Commission on Markets and Competition (CNMC) will now have expanded authority to track company margins and impose sanctions where necessary.

The focus is particularly on fuel prices, following the reintroduction of a subsidy of 20 cents per litre.

Officials want to ensure that as global oil prices fall, those reductions are reflected at the pump — not absorbed by companies.

‘We need to see prices come down, not just go up,’ Cuerpo said. ‘That is in everyone’s interest, including the companies themselves.’

The government estimates that, depending on the type of fuel, prices could drop by as much as 25 to 30 cents per litre.

For drivers, that could mean savings of around €20 to €30 per tank.

The wider package also includes energy tax cuts, support for vulnerable households and direct aid for sectors hit hardest by rising costs.

Alongside the energy measures, the government has also proposed a temporary freeze on rental prices – but this faces a tougher path.

Cuerpo acknowledged there is currently no parliamentary majority to approve the housing measure, and said the government will use the coming weeks to try to secure enough support before it goes to a vote.