Spain's government to cap gas and butane prices to prevent energy bills from rising even further

The measure, included in the new decree responding to the Middle East crisis, will limit the rise in prices under the Tur tariff to a maximum of 15%. As Minister Sara Aagesen confirmed upon her arrival at the European Energy Council in Dublin, this package revives mechanisms deployed during the Ukraine crisis to cushion the impact on vulnerable consumers as autumn and winter approach.

The government reviews this official tariff every three months (January, April, July and October) and, although it is designed to protect consumers and limit suppliers' margins, its price depends on the international price of gas.

This market is under severe strain due to the blockade of the Strait of Hormuz and is trading 170% above the levels at the start of 2026, reaching a three-year high. Without intervention from Moncloa, gas bills for the 16% of households on the Tur tariff would have soared by between 45% and 49%, according to calculations by the Ocu consumers' organisation.

On Tuesday, the price stood at around 73 euros per megawatt-hour (MWh), 170% above the levels at the start of 2026 and at a three-year high. Every three months, the price of this tariff, to which around 16% of households in Spain are subscribed, is reviewed.

The government has now decided to intervene to prevent a rise in gas bills that would otherwise have soared by nearly 45%, according to calculations by the Ocu.

This is not the only measure in the new aid package designed to curb the soaring energy prices seen in recent months, which have pushed inflation in September up to almost 5%, the highest level since February 2023.

Alongside gas, Cabinet is also going to cap the rise in the price of butane gas cylinders for the around seven million consumers in Spain. The government is going to set a maximum price cap of 19.55 euros until June next year, up from the current 18.84 euros, curbing a rise that threatened to push inflation even higher.

Furthermore, it is expected that the government will continue to prioritise keeping prices in check and extend fuel subsidies, despite Brussels having asked member states not to implement measures to stimulate demand for hydrocarbons. During his round of meetings with the sectors most affected by rising energy prices, Minister for the Economy Carlos Cuerpo expressed concern about the impact of these rises on inflation.

Beyond these short-term measures, the fundamental solution lies in accelerating the green transition and reducing dependence on fossil fuels.

Minister Aagesen highlighted that progress in renewable energy in Spain, with a 150% increase in clean capacity and 57% of electricity generation coming from renewables in 2025, has enabled the country to be better positioned and less exposed to gas price volatility than other countries.

Furthermore, Spain has a network of eight refineries which reduces its reliance on imports from third countries to less than 20%.

At European level, Spain, Portugal and Luxembourg have spearheaded an initiative calling on Brussels and urging Commissioner for Energy Dan Jorgensen to set a binding and ambitious renewable energy target for 2040, in line with the goal of reducing emissions by 90% by that year.

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