Petrol is 20 cents cheaper from Friday

The announcement by the government that the price of petrol will drop by 20 cents on Friday making all forms of fuel cheaper, has been widely welcomed.

The measures announced by President of the Government, Pedro Sánchez and endorsed by the Council of Ministers, are in response to the rising pump prices. Oil has been trading at record highs as a result of renewed economic activity following the pandemic and more recently the war in Ukraine.

So what has been agreed and how will it affect the motorist?

1. The price of fuel will fall by 20 cents per litre
2. The price that is paid at the pumps will reflect the lower price, with the petrol retailer being responsible for applying the discount
3. All fuel types available in Spain will attract the discount, that is all petrols (G95 E5, G95 E10, G98 E5 and G98 E10), all diesels for sale (diesel A, diesel B, diesel for marine use and biodiesel, bioethanol, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG) and AdBlue
4. The discount will come into effect on Friday April 1 and will remain in place for three months, expiring on June 30, 2022

The reduction, which will cost the government billions in lost revenue, will be funded from a 15 cent tax reduction and a 5 cent price reduction by petrol producers.

Some companies have already the 5 cent reduction with some having applied or are intending to apply a 10 cent reduction.

The government has worked to help the average motorist cope with the rising costs of fuel, as it has businesses hard hit by the additional cost. As the price drops from Friday, it is everyone’s hope that the market returns to normal sooner rather than later.

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