Is the government’s fuel subsidy about to come to an end in Spain?

Since April all drivers have benefited from a 20 cent discount on every litre of fuel but prices have dropped considerably since then

JOSÉ MARÍA CAMARERO MADRID.

Oil prices have been dropping so much in Spain that the government may decide to modify the subsidy of 20 cents per litre of fuel which it introduced as a general measure for all drivers in April with a view to it continuing until the end of this year.

With a barrel of Brent currently costing around 80 dollars, fuel prices have now dropped below the level at the end of March, when the decision to apply the subsidy was made.

In recent weeks the government has been considering whether or not to extend the discount into 2023, but there is now speculation that it could be restricted to professionals in certain sectors instead.

At the moment, diesel costs around 1.66 euros per litre, which is the same price as in early March and far below the 1.85 euros per litre when the decision was made to introduce the subsidy, and the 2.10 euros a litre it reached in June.

The situation with 95 octane petrol is practically the same. The current price is around 1.59 euros a litre, after reaching more than two euros a litre in the summer.

Finance minister María Jesús Montero has said the government is still considering what to do, but their decision will be announced within a few days. “We are putting the final touches to the new package of measures, which will depend on energy prices and the price of a barrel of oil. We have to decide whether to extend the existing measures or replace them with different ones,” she said.