The Central Government is drawing up an anti-crisis plan but it will not be as broad as the fuel-tax reductions measures used in 2022.

The Government has chosen specific sectors where energy and fuel costs have the most significant impact on the general economy.

These sectors are: agriculture, farming, and fishing, which are heavily affected by the 40-50% rise in fertiliser costs and the high cost of diesel for machinery.

Transport & Logistics: Includes road haulage, taxis, and public transport; sectors that directly influence the final price of the consumers’ budgets.

Energy-heavy Industry: Large-scale manufacturing and industries like steel that are most vulnerable to electricity and gas price volatility.

However, the Minister for the Economy, Carlos Cuerpo, has definitively ruled out a return to the universal 20-cent-per-litre subsidy that was in place during the crisis of 2022 generated by the invasion of Ukraine.

The reason being is that they found, the Minister claims, that a flat-rate discount benefited high-income households (who tend to consume more fuel) more than those in need, making it an inefficient use of public funds.

Another problem was in 2022 that many small, independent, service stations struggled with the administrative and financial burden of applying the discount before being reimbursed by the state. Furthermore, large oil companies raised base prices to offset the discount, reducing its actual benefit to consumers.

(News: Spain)

Keywords: Tax Relief, Fuel Prices, Aid for Sectors, 20-Cents Off

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