Petrol and diesel back to 2 euros a litre on 1 July in Spain
The end of tax relief introduced during the Iran war will push petrol and diesel up by 30 to 40 cents from 1 July. Spanish drivers will pay ha
English · Original discussion in Spanish · Published
Petrol and diesel: from 1.29 to 2 euros in barely a month
Remember that «temporary solution» from March against the relentless fuel price rise caused by the Iran war? Well, the good times are over. On 1 July, the Spanish Government withdraws the tax relief on petrol and diesel, and a litre will go back to two euros. Drivers, who are still paying less than 1.30 euros at some low-cost stations, are in for a sudden hit of 30 to 40 cents.
How the rise works: taxes coming back
The mechanism is transparent: in March, to cushion the impact of the Iran war, VAT and the Special Hydrocarbons Tax (a Spanish fuel excise duty) were reduced. Now they have to be restored. The industry is already warning that on 1 July the price per litre will shoot up. If you fill up today at 1.29 euros, in July you will pay between 1.59 and 1.69, although some anticipate the real increase could be even bigger because oil companies will take the chance to adjust their margins. The question is whether this time the «last-minute miracle» happens or whether drivers will have to dig into their pockets to get to work.
Will demand hold up or will habits change?
Meanwhile, the debate on the street is déjà-vu: the car is essential, public transport can't cope, people drive to the bakery. But the reality is that, miracles aside, on 1 July the pump is going to charge what it must. And that's more than two euros. The irony of «tax relief»: they remove the tax so you can get it back in one go.
Related discussions in the forum
Remember that «temporary solution» from March against the relentless fuel price rise caused by the Iran war? Well, the good times are over. On 1 July, the Spanish Government withdraws the tax relief on petrol and diesel, and a litre will go back to two euros. Drivers, who are still paying less than 1.30 euros at some low-cost stations, are in for a sudden hit of 30 to 40 cents.
How the rise works: taxes coming back
The mechanism is transparent: in March, to cushion the impact of the Iran war, VAT and the Special Hydrocarbons Tax (a Spanish fuel excise duty) were reduced. Now they have to be restored. The industry is already warning that on 1 July the price per litre will shoot up. If you fill up today at 1.29 euros, in July you will pay between 1.59 and 1.69, although some anticipate the real increase could be even bigger because oil companies will take the chance to adjust their margins. The question is whether this time the «last-minute miracle» happens or whether drivers will have to dig into their pockets to get to work.
Will demand hold up or will habits change?
Meanwhile, the debate on the street is déjà-vu: the car is essential, public transport can't cope, people drive to the bakery. But the reality is that, miracles aside, on 1 July the pump is going to charge what it must. And that's more than two euros. The irony of «tax relief»: they remove the tax so you can get it back in one go.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (25 replies).
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