ARCHIVED - Spanish government considers extra 5-10 cent bonus at fuel pumps after prices rise for the first time this summer
The government in Spain is considering increasing the fuel discount to lower costs
Fuel prices have experienced a rebound this week for the first time since the beginning of the summer, with petrol rising to 1.594 euros per litre after the government’s 20-cent bonus is applied. Crucially though, the cost remains below the 2-euro mark in the more than 11,400 Spanish filling stations analysed, even without the fuel discount.
Petrol and diesel have increased by 0.5% and 4%, respectively, in the last week but the cost is still less than the record prices since in March. Today, it costs around 88 euros to fill a standard 55-litre petrol tank.
The government subsidy also means that fuel prices in Spain remain below the European average, a factor which is prompting the Ministry of Transport to not only consider extending the measure beyond the end of the year, but to actually increase it.
This was hinted at by Minister Raquel Sánchez who confirmed that the powers that be will “continue to analyse the impact” of the subsidy.
The government is considering increasing the bonus by between 5 and 10 cents per litre, a move which has already been made this week by the French authorities.
A suggestion that the fuel bonus should be means tested was dismissed by the Transport Ministry earlier this year but the entire scheme has come under fire, with even the Bank of Spain questioning its real impact.
While fuel costs have definitely dipped overall this summer, the financial experts believe that the neediest families aren’t seeing the benefits, since the discount has lowered inflation at a rate of 0.61% for higher-income households compared to just 0.35% for low-income groups.
To further mitigate rising costs, the government has this week announced a VAT cut on gas to just 5% until the end of the year.
Image: Archive
Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox
Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)
OR
you can sign up to our FREE weekly roundup!
Read some of our recent bulletins:
25% Discount Special Offer subscription:
36.95€ for 48 Editor’s Weekly News Roundup bulletins!
Please CLICK THE BUTTON to subscribe.
(List price 3 months 12 Bulletins)
Read more stories from around Spain:
Contact Spanish News Today: Editorial 966 260 896 /
Office 968 018 268
