The arrival of July has brought with it a change of scenery for Spanish drivers who, inevitably, will have to dig a little deeper into your pocket as you pass by the gas station. After months of exceptional measures to contain the surge in energy prices, the government has decided to withdraw part of the tax shield that protected fuel costs, returning the Value Added Tax (VAT) to its usual rate. This move coincides with the start of mass holiday travel, which has generated considerable concern among those preparing their vehicles for the road.
The measure, which ends the reduced 10% rate that had been in place since March, marks a return to the standard 21% rate. Although the government's intention is normalize tax collection Following European guidelines, the impact at the pump is immediate and noticeable from the very first minute. However, to soften the blow, a gradual withdrawal strategy has been designed using other levies, which will attempt to cushion the price increase throughout the rest of the summer period.
Goodbye to reduced VAT: back to 21%
The Royal Decree-Law regulating these subsidies set June 30th as the expiry date for the tax relief on fuels. From now on, any refueling transaction within the national territory will be taxed at the standard rate of 21%, which means an automatic increase in the final cost for the domestic consumer. This decision responds to a stabilization of international crude oil prices, according to government sources, although consumer associations warn that inflation remains a latent problem for families.
To try to prevent this change from causing a major disruption to household budgets, a compensatory mechanism has been activated in the Special Tax on Hydrocarbons. Instead of eliminating all subsidies at once, the Government has opted for a phased approach. monthly bonuses that will gradually decrease until it disappears completely in October. This way, the aim is for the market to absorb the change gradually, avoiding an unsustainable price spike during the summer holiday exodus.
This increase does not come alone, as it adds to the recent recovery of the ordinary taxation on electricity and gaswhich returned to 21% just a few weeks ago. The strategy seems clear: dismantle the anti-crisis measures that were implemented after the international conflicts, returning to a pre-crisis tax structure that allows for balancing public accounts as requested by international organizations such as the IMF.
Despite this normalization, the government has an ace up its sleeve in the form of a safeguard clause. If prices were to skyrocket again due to renewed geopolitical tensions, there is an automatic mechanism that would reactivate the 20 cent discounts per liter if inflation for these products exceeds 15%. It is a safety net designed to prevent a new energy shock from leaving citizens in a situation of extreme vulnerability.
Progressive discounts on the Hydrocarbons Tax
The new scheme designed for the Special Tax on Hydrocarbons establishes a very precise schedule that drivers should be aware of to avoid surprises. During the month of July, a discount of 15 cents per liter will be applied, a figure that It will be reduced to 10 cents during August and will fall to 5 cents in September. This schedule aims to make the transition to the real market price as painless as possible for the average citizen's wallet.
However, various employers' associations in the sector maintain that these reductions in the excise tax are insufficient to offset the impact of VAT. Organizations such as CEEES point out that, mathematically speaking, the tax increase neutralizes any temporary tax reliefThis results in a net increase in fuel prices. In practical terms, even if the base tax decreases by a few cents, the final bill paid by the user remains higher than the previous month.
It is important to note that the impact of this tax varies depending on the type of fuel. While the reduction in the excise tax is more significant for diesel, aimed at balancing its price, gasoline experiences a smaller adjustment, which explains why. the price gap between the two It has changed again. Historically, diesel was cheaper, but recent regulatory shifts have jeopardized this seemingly unshakeable trend.
Tax officials agree that these measures are merely palliative and that, in the long run, users will end up paying the full price without discounts. They estimate that the monthly savings from filling a 50-liter tank will decrease month by month: from the savings of over 9 euros In July we will go down to just 3 euros in September, before the discount evaporates completely with the arrival of autumn.
How much does it cost to fill the tank now?
Translating these percentage changes into hard cash is what really worries consumers. According to estimates from various industry associations, 95-octane gasoline has experienced an increase of around 10 or 11 cents per literThis puts the average price at around €1,55 at many service stations across the peninsula. This means that filling a standard tank can now cost about €5 more on average than it did just a few days ago.
In the case of diesel, the impact is somewhat more contained thanks to more generous tax breaks for this fuel. The average increase is between 3 and 5 cents per literThis increases the cost of filling the tank by approximately 2 or 3 euros. Although it may seem insignificant, for those who use their car daily for work, this constant trickle of cents adds up to a significant increase at the end of the month, directly impacting their ability to save.
The price disparity between autonomous communities and brands has also widened. While some low-cost stations have tried to absorb part of the increase to avoid losing customers, the major oil companies They maintain their usual margins.This forces drivers to be more vigilant than ever about using price comparison apps. It's not uncommon to find differences of up to 10 cents per liter between gas stations located just a few kilometers apart.
For users of 98-octane gasoline, the situation is even more dire, with increases that can reach 8 euros per tank. This type of fuel, less subsidized due to its less mainstream nature, is the one that the more it suffers from tax pressureMany drivers are choosing to switch to lower octane fuels or reduce their use of private vehicles due to what they consider a prohibitive cost for their daily budget.
Protection for key sectors and market surveillance
It's not all bad news, as the government has decided to protect the sectors most dependent on fuel for their economic activity: professional transport, fishing, and agriculture. They will maintain the full aid of 20 cents per liter of professional diesel. This measure aims to prevent the increased cost of logistics from being passed on to the price of food and other basic goods, which could fuel an inflationary spiral that would be difficult to control.
In addition to fuel subsidies, specific allocations have been approved for the agricultural sector, such as the 165 million euros earmarked for subsidize the purchase of fertilizersThis budgetary effort seeks to provide relief to a sector already suffering from production costs and poor harvests, ensuring that the end of the general VAT reduction does not deliver its final blow at such a critical time.
On the other hand, monitoring of service stations will be significantly intensified. The National Commission for Markets and Competition (CNMC) will be closely scrutinizing the profit margins of gas stations. to ensure that there are no abuses Taking advantage of the confusion surrounding the tax change, a list of facilities exhibiting suspicious behavior will be published periodically, allowing citizens to know where to refuel with confidence.
Consumers will also have mechanisms at their disposal to report irregular practices if they detect unjustified price increases that do not correspond to the actual tax situation. Some have already been identified. more than 50 service stations that require special monitoring by the authorities, sending a clear message that companies will not be allowed to increase their profits at the expense of state protection measures.
Transparency and the future of energy
This tax restructuring also seeks to send a fundamental message about decarbonization. Tax experts emphasize that across-the-board tax cuts can be counterproductive in the long run, since They encourage the consumption of fossil fuels Instead of encouraging the transition to cleaner energy, by restoring VAT to 21%, fuel prices more accurately reflect their true cost and environmental impact, aligning with the European Union's climate goals.
The return to standard taxation marks the beginning of a new phase where energy efficiency will be key to maintaining purchasing power. As long as international prices remain stable, further widespread price reductions are unlikely, so experts recommend adopt efficient driving habits and consider alternative mobility options, such as using electric carsThe era of cheap fuel seems to be definitively over, and smart management of every liter of gasoline will be essential from this summer onwards.
The normalization of fuel taxes, coupled with new, decreasing discounts and the continuation of subsidies for professionals, creates a complex but well-defined price landscape. Although the VAT increase to 21% directly raises prices for households, the gradual withdrawal mechanism and active monitoring of profit margins aim to mitigate the impact. to protect economic equilibrium In general, the evolution of international conflicts and oil prices will determine whether this transition to standard taxation remains stable or whether it becomes necessary to reactivate safety nets to ease the financial burden on citizens in the coming months.
