Government says goodbye to 20 cents per litre fuel discount in Spain

It has been confirmed that on January 1, 2023, the Spanish government will remove the discount of 20 cents per litre on fuel.

Gonzalo Garcia Andres, the Secretary of State for the Economy, confirmed today, Monday, December 19, that the discount of 20 cents per litre on fuel for drivers in Spain will come to an end. This will occur on January 1, 2023.

“It has been a very effective measure, initiated at the end of March to deal with the increase in prices, but which was defined as ‘temporary'”, said Nadia Calviño’s number two at an event organised by Funcas. “Now it must be adapted and withdrawn in general terms, with accompanying measures for the sectors that are most affected”, he added.

“It is time to gradually adapt this response to the costs of the war”, Garcia Andres confirmed, stating that the “temporary measures must be gradually withdrawn because the general budget cannot remain permanently”.

Only recently, Maria Jesus Montero, the Spanish Minister of Finance had insisted that the government was studying the modification of this aid to motorists.

The decision, therefore, is taken at a time when the evolution of prices is more moderate. Before the end of the year, the Government must define what it considers to be the sectors most affected by the increase in prices.

Decisions have to be made regarding what type of discount it maintains and whether it extends aid to vulnerable groups of the population. In France, the Macron government has decided to give a €100 per month fuel payment to workers who use a vehicle to drive to work and who have an income of less than €2,000 a month.

The Government assumes – and this has been explained by the Secretary of State for the Economy – that the decisions ‘will have an effect’ on inflation. In effect, the measures are key to lowering inflation, but the financial cost is high -around €5,700 million a year.

“To evaluate the measures, we take into account the effect of inflation when we propose them and when they are withdrawn”, Garcia Andres concluded.

With ten days to go until December 29, the date on which an extraordinary council of ministers of eminent economic content is expected, the only other certainty is that transport in Cercanias, Rodalies, and Media Distancia will continue to be free, as reported by lavanguardia.com.

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