Gibraltar slashes fuel duty by 50 per cent in response to rising global prices

The Government of Gibraltar has announced that the new duty on fuels will be set at 14 pence per litre - half the originally proposed rate of 28 pence per litre - in a move designed to protect consumers and businesses from rising international fuel costs.

Of the new rate, three pence per litre will continue to be directed to the Gibraltar Climate Fund, maintaining the territory's commitment to environmental sustainability despite the wider reduction.

The Government said the revised figure reflects its response to geopolitical developments that have driven fuel prices higher globally, describing the measure as part of "a broader and balanced approach that provides practical relief to the community while continuing to support longer-term environmental goals."

Alongside the duty cut, the Government took the opportunity to encourage residents to walk rather than drive wherever possible, suggesting that pressures beyond Gibraltar's control could be turned into an opportunity to "build healthy habits and a cleaner, safer Gibraltar."

Chief MinisterFabian Picardo said: "We are working to protect people from the impact of rising fuel costs at the pump. While electricity prices in Gibraltar are already subsidised, fuel prices are more directly exposed to events beyond our shores. This is why the Government is acting to shield consumers and businesses from those pressures as far as we can."