September has brought mixed news for motorists, with petrol prices rising while diesel becomes cheaper following changes to the Spanish Government’s fuel-tax discounts.
From September 1, the hydrocarbon-tax discount on petrol has been reduced from 10 cents to five cents per litre. By contrast, the discount applied to diesel has doubled from 10 to 20 cents per litre following sharp price increases during July.
Based on average prices in Alicante province, filling a typical 55-litre petrol tank will now cost around €3.30 more, while diesel drivers will save approximately €4.40.
The Government introduced the revised tax-relief system at the end of June as part of measures intended to reduce the economic impact of the conflict in the Middle East and the resulting rise in global oil prices.
The disruption to supplies through the Strait of Hormuz, a crucial route for international oil shipments, has pushed up crude prices and created further instability across fuel markets. Prices have remained high despite a fragile ceasefire and continued daily fluctuations.
Under the Government’s original timetable, the fuel discount was designed to be gradually reduced, falling from 15 cents per litre in July to 10 cents in August and five cents in September. VAT also returned to its standard rate of 21 per cent.
However, the decree included a safeguard allowing larger discounts to be restored if either petrol or diesel recorded a monthly price increase of more than 15 per cent.
Diesel remained below that threshold in June but rose by 15.7 per cent in July. This triggered the enhanced discount of 20 cents per litre for September.
As a result, the average price of diesel in Alicante province is expected to fall from approximately €1.85 to €1.77 per litre. Filling a 55-litre tank will cost about €97.35, compared with €101.75 at the end of August.
Drivers of petrol vehicles face the opposite situation. The price of 95-octane petrol increased by 7.3 per cent in July, well below the threshold required to retain a larger discount.
Its tax reduction has therefore fallen from 10 cents to five cents per litre. The average pump price is expected to rise from €1.76 to €1.82, taking the cost of a 55-litre tank from €96.80 to €100.10.
The changes mean petrol is once again more expensive than diesel for the first time since February. Diesel had suffered the largest increases following the outbreak of the Middle East conflict.
The longer-term outlook remains uncertain. Brent crude, the European benchmark, rose by almost three per cent on Monday to exceed $90 a barrel following renewed US attacks near the strategically important Strait of Hormuz. West Texas Intermediate, the main US benchmark, also climbed by 2.6 per cent to more than $85.
With instability continuing across the Persian Gulf, experts remain cautious about predicting when fuel prices could begin a sustained decline.
For now, September offers some welcome relief for diesel drivers, although prices for both fuels remain considerably higher than before the conflict began.
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