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Spain extends the VAT cut on olive oil as prices continue to soar
The cost of olive oil in Spain has increased by an incredible 205% since the start of 2021
The sky-high price of groceries in Spain continues to put households under pressure, and many studies have shown that the average shopper these days is forced to forego many items they used to throw in the trolley because they simply cost too much. This is the case with olive oil, which has shot up by more than 200% since January 2021.
This dinner table staple has more than tripled in price in a couple of short years, and today a litre bottle will set you back around 9 euros. Back in January 2024, the Spanish government decided to eliminate the VAT on olive completely to try and stabilise the cost, having previously reduced it to 5% along with several other grocery products.
The crisis measure was due to expire at the end of this month, but thankfully the government has confirmed it will extend the tax cut from July 1, so while olive oil will continue to be expensive, at least the price tag won’t shoot up again.
“This measure aims to protect and encourage the consumption of olive oil, a healthy product whose price has recently become more expensive as a result of the drought, among other reasons,” a government source explained.
According to data from the National Institute of Statistics (INE), olive oil was 68% more expensive this April than a year before, and has accumulated a rebound of 205% since the beginning of 2021.
The Minister of Agriculture, Fisheries and Food, Luis Planas, highlighted this measure as “very positive” for Spanish households, which “have demonstrated their loyalty” to this food despite the intense price increases in the last two years.
People in Spain consume an average of 6 litres per capita per year, while the global average is just 0.4 litres, so it’s a valuable commodity indeed.
“Spanish people have a great attachment to the consumption of this product,” highlighted the minister, who stopped short of predicting when the price of oil in supermarkets might finally start to stabilise.
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Image: Pixabay
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