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Spain slashes VAT on petrol as costs rocket

Five percent tax on electricity also scrapped

Higher petrol prices.

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https://www.majorcadailybulletin.com/news/did-you-know/2026/03/14/140901/fuel-prices-mallorca-today-find-cheapest-petrol-stations-with-our-interactive-map.html

Spain will reduce the value-added tax on fuel products to 10% from 21% as part of measures to cushion the economic ‌blow from ​the Middle ‌East conflict, SER ‌radio station reported, citing sources familiar with ​the plans.

Madrid also plans to suspend ​the excise duty ‌on hydrocarbons, which would lead to an immediate reduction in the price of diesel and petrol ⁠of between 0.30 euros and 0.40 euros ($0.35-$0.46) ​per ​litre, ‌the SER report added.

The government will eliminate a 5% ‌tax on electricity consumption, according to the report. A government spokesperson declined to comment ahead of the press ⁠conference announcing the measures, ‌set for 1100 local time.

Ministers said earlier this week the measures will ​include aid for ‌economic ‌sectors most exposed to the crisis, but added that the country's high generation of renewable energy meant its economy ⁠was ​less exposed to the impact of ​oil price spikes caused by the war.

This is the first of many measures which the Spanish government could take as a result of the conflict in the Gulf.

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