New diesel tax coming to Spain that will affect millions of drivers
The EU has given Spain a 1-month deadline to impose the tax, which will bring the cost of diesel in line with petrol
The dreaded diesel tax, which has been in the works since late last year, could arrive by the middle of next month, as Brussels has given Spain a one-month deadline to bring the cost of this fuel to the same level as petrol. Once it’s approved, the law will make diesel much more expensive for more than 18.4 million car and motorcycle drivers alone.
This week, the EU told Spain that it will need to impose the diesel tax by February 20 at the latest if it’s to unlock the fifth payment of Next Generation funds, which is worth almost 25 billion euros in loans and subsidies.
Following the EU demand, Spain’s Minister of Economy, Carlos Cuerpo, said that the Spanish Government “will continue working with the Commission's assessment in mind” but shied away from giving any solid dates or a definite amount that drivers will have to pay at the pumps.
The fuel tax is just part of a larger reform required by Brussels, which requires Spain to overhaul “the areas of environmental taxation, corporate taxation, wealth tax, health tax and personal income tax on capital income, among other things,” with the aim of generating around 4.5 billion euros.
So, what does this mean for drivers?
Today, around 51% of all vehicles on Spanish roads run on diesel. Diesel has always been discounted, which is why it is normally cheaper than petrol. According to the Organisation of Consumers and Users (OCU), when Spain eliminates this bonus, the tax on a litre of diesel will increase from the current 30.7 cents to 40.069 cents.
In practice, drivers of diesel cars can expect to pay around 9.37 cents more per litre in the very near future.
Once we add in VAT charges, it will cost around 5.67 euros more to fill up an average 50 litre tank with diesel.
The OCU concludes that, for an average motorist who drives 15,000 kilometres a year, the additional cost of this tax increase on diesel will mean an extra fuel expense of up to 102.03 euros each year.
An important side note is that this new increase in the hydrocarbon tax for diesel fuel will only operate in mainland Spain and the Balearics, so the Canary Islands will be saved from the price hike.
Likewise, the tax increase won’t apply to professional B diesel, used by transporters and farmers, or to C heating diesel, so it will only affect conventional A automotive diesel.
Find all the latest motoring and transport news here or join our Driving in Spain Facebook group for regular updates
Image: Archive
Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox
Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)
OR
you can sign up to our FREE weekly roundup!
Read some of our recent bulletins:
25% Discount Special Offer subscription:
36.95€ for 48 Editor’s Weekly News Roundup bulletins!
Please CLICK THE BUTTON to subscribe.
(List price 3 months 12 Bulletins)
Read more stories from around Spain:
