Drivers across Spain will start paying more at the pump from Wednesday after the government begins phasing out the tax cuts introduced in March to reduce fuel prices.
A decree published in the Official State Gazette (BOE) confirms the gradual withdrawal of the discounts, with fuel taxes increasing in stages until October.
The first change takes effect on July 1, when VAT on fuel returns to its standard rate of 21%.
At the same time, the Special Hydrocarbons Tax will begin rising month by month until the temporary tax relief has been fully removed.
Petrol to jump by 11 cents a litre
Based on Monday’s average prices, a litre of 95-octane unleaded petrol will rise by around 11 cents, taking the average price at service stations across mainland Spain and the Balearic Islands to €1.55 per litre.
For motorists, that means filling a typical family car’s fuel tank will cost between €5 and €6 more than it did on June 30.
Diesel also set to increase
Diesel drivers will also see prices rise, although by a smaller amount.
The average price of diesel (Gasoleo A) will increase by around five cents per litre, reaching €1.56 per litre.
That will add almost €3 to the cost of filling an average fuel tank.
More rises to come
The government has confirmed it intends to reduce the remaining fuel tax relief by five cents each month until October, meaning drivers are likely to see further gradual increases over the summer.
The decree also includes a safeguard allowing the tax cuts to be reinstated if fuel prices surge again.
The discounts would automatically return if annual hydrocarbon inflation in June rises by 15% more than it did during the same period last year, with any renewed tax relief taking effect from August.
The government has included the same mechanism for electricity and natural gas taxes should energy prices climb sharply again.
