Reduction of VAT on natural gas from 21 to 5 per cent approved by Spanish government

Maximum cap of €180/MWh on natural gas prices agreed by EU nations

Image of a gas flame burning. Credit: Marian Weyo/

The Council of Ministers definitively approved the reduction of VAT on natural gas from 21 to five per cent.

This Tuesday, September 20, the Council of Ministers definitively approved the reduction of VAT on gas. It will subsequently drop from 21 to 5 per cent. The decision comes two weeks after it was announced in the Senate by Pedro Sanchez, the President of the Government.

“In principle, until December 31, the same as the tax reductions in the field of energy”, explained Teresa Ribera, the Minister for Ecological Transition. She announced that there would be a saving of: “more than €10,000 million to consumers as a result of these tax cuts”. Ribera added: “We will be watching how things evolve, and in the new budget year, if necessary, it will be extended for next year”.

“It is about protecting the sectors most affected by the rise in energy prices resulting from the war, and cushioning the cost for companies and families”, stressed the Minister.

The Government considers that with the reduction of VAT on gas to the minimum allowed in the EU, consumers will save €190 million. Including the supply to boilers of neighbouring communities, the Ministry of Ecological Transition pointed out that this measure, however, does not include a tax reduction for liquefied petroleum gas.

Written by

Chris King

Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at