Spain to raise electricity tax to 21% and fuel could hit 2 euros
Electricity at 21% and petrol at 2 euros: Spain's government withdraws subsidies and prices soar. How much will the self-employed and families pay? A data-based analysis.
English · Original discussion in Spanish · Published
Electricity at 21% and petrol at 2 euros: the end of subsidies that makes everyday life more expensive
The price of diesel will rise from 1.70 to 2 euros per litre, an increase of 17.6%, while electricity will go up by 21%. The Spanish government justifies the withdrawal of subsidies with the end of the Iran war, but the timing —once the elections are over— raises eyebrows. Self-employed delivery drivers, who were already operating on razor-thin margins, are the first to do the maths.
The real cost for delivery drivers
A typical delivery van consumes around 8.5 litres per 100 kilometres in urban driving. For a daily route of 100 km, the current cost is 14.45 euros a day; with diesel at 2 euros, it will be 17 euros. The difference: 2.55 euros a day, which over 22 working days adds up to 56.10 euros more per month. The self-employed are already feeling it in their pockets; large fleets will pass it on to customers via surcharges, and in the end the consumer absorbs the extra cost.
Growing discontent: between green taxes and record revenue
While the government talks about the end of temporary subsidies, critics point out that the energy tax system is a revenue machine. Record tax takings in recent years do not square with the rhetoric of protecting the vulnerable. Selective aid to specific sectors —farmers, fishermen, hauliers— is seen as a patronage mechanism that does not solve the underlying problem: an energy dependence the state fails to address.
The rise in electricity and fuel prices is not an isolated episode. With crude oil prices still volatile and fiscal pressure on the rise, the question is whether this new scenario is a temporary peak or the beginning of a more expensive normality. What no one can answer yet is how much the average Spaniard's wallet can take before the discontent turns into something more than complaints on social media.
Related discussions in the forum
The price of diesel will rise from 1.70 to 2 euros per litre, an increase of 17.6%, while electricity will go up by 21%. The Spanish government justifies the withdrawal of subsidies with the end of the Iran war, but the timing —once the elections are over— raises eyebrows. Self-employed delivery drivers, who were already operating on razor-thin margins, are the first to do the maths.
The real cost for delivery drivers
A typical delivery van consumes around 8.5 litres per 100 kilometres in urban driving. For a daily route of 100 km, the current cost is 14.45 euros a day; with diesel at 2 euros, it will be 17 euros. The difference: 2.55 euros a day, which over 22 working days adds up to 56.10 euros more per month. The self-employed are already feeling it in their pockets; large fleets will pass it on to customers via surcharges, and in the end the consumer absorbs the extra cost.
Growing discontent: between green taxes and record revenue
While the government talks about the end of temporary subsidies, critics point out that the energy tax system is a revenue machine. Record tax takings in recent years do not square with the rhetoric of protecting the vulnerable. Selective aid to specific sectors —farmers, fishermen, hauliers— is seen as a patronage mechanism that does not solve the underlying problem: an energy dependence the state fails to address.
The rise in electricity and fuel prices is not an isolated episode. With crude oil prices still volatile and fiscal pressure on the rise, the question is whether this new scenario is a temporary peak or the beginning of a more expensive normality. What no one can answer yet is how much the average Spaniard's wallet can take before the discontent turns into something more than complaints on social media.
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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 (15 replies).
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