ARCHIVED - Spanish petrol stations ask to scrap fuel discount in favour of tax cut
The current 20 cent per litre fuel subsidy in Spain is set to expire at the end of the year
With the December 31 deadline looming for the Spanish government to decide whether to keep or ditch the current 20 cent per litre fuel discount, the country’s service stations have come up with a controversial compromise: lose the fuel bonus, but replace it with a tax reduction that will benefit all drivers.
The government has already strongly hinted that it’s in favour of limiting the bonus scheme to certain social groups come January 1 and as that date fast approaches, petrol station bosses have also demanded “open and transparent dialogue” so that they’re not left in the dark about the plans until the last minute, as happened earlier this year.
As well as assuring the public that Spain has plenty of gas supplies to see it through the winter, the Minister of Ecological Transition, Teresa Ribera, said this week that a decision on the fuel discount will be made soon. She did, however, highlight the fact that the current fuel bonus was implemented in a hurry and may disproportionately favour middle and high income families.
While the confusion remains, the Spanish Confederation of Service Station Entrepreneurs (CEEES) has demanded a tax cut instead, which won’t discriminate or leave smaller filling stations out of pocket.
“The tax reduction would be the best option, as it has been applied to other energies, such as electricity and gas. With high fuel prices like the current ones due to the Russian invasion of Ukraine, tax revenues skyrocket,” a CEEES statement read.
The thought at the moment is that, from January, only the most vulnerable families and perhaps professional drivers will continue to enjoy the fuel subsidy, but the future plans of the Spanish government have yet to be revealed.
Image: Archive
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