Spanish petrol stations call on the government to reinstate fuel price measures 'as an urgent matter'

While the price of Brent crude oil continues to follow a very marked upward trend (reaching a price of almost 105 dollars per barrel this Friday), petrol station operators point out that the pressure is "extraordinarily intense" in the refined products markets, with petrol prices skyrocketing and an unprecedented rise in the cost of diesel.

Operators have declared the price hike "unsustainable". It is putting "extreme" pressure on the supply costs of Spanish service stations, "directly impacting retail prices and threatening both the financial viability of companies in the sector, the vast majority of which are SMEs and self-employed businesses, as well as the purchasing power of the public and the competitiveness of the national economy".

The CEEES has issued a strong warning: "Unless tax relief measures are introduced immediately, the average retail price will rise sharply from 1 October."

That is the day when any measures the government has adopted to mitigate the impact of the war in Iran are due to expire.

According to details from the sector's employers' organisation, petrol will rise in price by an average of 6.05 cents per litre (resulting from the application of the announced five cents plus IVA). The rise in the price of diesel will be much steeper, reaching 24.2 cents per litre, as the current 20-cent tax reduction will expire, with IVA added on top.

In light of this inflationary scenario, the CEES has called on the government to "urgently adopt" extraordinary measures similar to those successfully implemented between 22 March and 30 June. The confederation is calling for the immediate reinstatement of a reduced rate of ten per cent for IVA on motor fuels, as well as a temporary reduction in the special tax on hydrocarbons (IEH).

"The current situation in the international markets leaves no room for delay. We need the government to reintroduce the fiscal measures that proved their effectiveness last spring to protect consumers and ensure the survival of our network of petrol stations," CEEES president Javier de Antonio said.

Since the war in Iran began on 28 February, the price of a litre of petrol in Spain has risen by 25 per cent, from 1.48 euros per litre to the current 1.85 euros.

In the case of diesel, the increase is 26.4 per cent, from 1.44 euros to 1.82 at present. These prices include the tax reduction currently in force, which amounts to five cents for petrol and 20 cents for diesel.

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