The diesel discount in Spain rises to 20 cents per liter from Tuesday. This measure represents an increase in fossil fuel subsidies in the neighboring country.
The decree-law approved at the end of June restructured the fuel tax breaks that had been in place since March. This reform significantly altered the way the Spanish government supported fuel consumers.
With the new legislation, VAT returned to the standard rate of 21%, reversing the temporary reduction that had been implemented previously as a support measure during the previous period.
Subsidies were concentrated on the hydrocarbon tax, replacing the previous system of more widespread support. The discount applied is decreasing, meaning it is progressively reduced over time.
