Spain restores fuel subsidies via royal decree

The Spanish Government has introduced a tiered fuel discount starting at 20 cents per litre this October to combat rising energy costs.

The Spanish Government has announced the recovery of fuel subsidies via a royal decree, offering a 20-cent reduction per litre this October. Minister Carlos Cuerpo confirmed the subsidy will drop to 13 cents in November and 6 cents throughout December.

Fuel prices are expected to sit near 1.80 euros per litre from 1 October. While VAT remains unchanged, the 20-cent discount will return if prices rise by 15%. Subsidies for farmers, ranchers, and professional transport sectors are also being resumed.

Gas price increases are capped at 15% for the October review, protecting three million consumers. Although no new electricity measures were announced, VAT reductions will reactivate if costs spike by 15%, aiding eight million people on regulated tariffs.


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