How long will the 20 cent discount on a litre of fuel continue for?
The discount of 20 cents on a litre of fuel in Spain, which was introduced in April to combat rising prices and has been a great help for drivers, could be coming to an end for most people. The Minister for Ecological Transition, Teresa Ribera, said this week that she was in favour of an extension after it finishes on December 31st, but only for specific transport sectors and families who need it most.
“The discount was an emergency measure in the summer when fuel prices were very high and a rapid reaction was needed. That is why it was available to everybody because it was more straightforward to do it like that, but it is increasingly important to focus on those who need it the most, whether for professional reasons or because of low income,” she said during a radio interview.
Ribera also said recently that people with the highest income had benefited most from a measure which is more expensive for the government than they originally anticipated.
The cost of the measure could be more than 6.2 billion euros by the end of the year, which 2 billion more than expected, despite fuel prices beginning to drop.
The price of petrol is now lower:
According to the EU Commission’s latest Fuel Bulletin, a litre of petrol costs 1.771 euros on average at the moment, and diesel 1.963 euros. Petrol is therefore cheaper than it was before the discount was approved at the end of March (1.818 euros/litre), although diesel is more expensive (it was 1.837 euros/litre).
Although Ribera has insisted in the past that fossil fuels should not be discounted or be given favourable fiscal treatment because that is an essential principle for promoting the transformation of the energy system, “that is not going to happen overnight and when prices are skyrocketing”.
An official announcement is expected before Christmas.
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