The Spanish government is reinforcing the diesel discount to 20 cents per liter starting Tuesday, September 1st, doubling the tax reduction in force at service stations. Madrid decided to review the initial strategy of gradual withdrawal of energy subsidies, which foresaw decreasing cuts of 15 cents in July, 10 cents in August and only five cents in September. The continuous rise in international refined product quotations forced the adoption of extraordinary measures to defend the treasury of families and companies. The bonus applies directly at the time of refueling and benefits individuals and professional operators, being financed by the Spanish state budget through the flexibilization of special fuel taxes.
Gasoline remains covered by a state support set at five cents per liter. Freight transport companies can thus amortize immediate operational logistics costs, with oil companies and distributors ensuring the mechanical application of the final value on the refueling receipt.
The populations of Portuguese border municipalities are preparing trips to the neighboring pumps of Galicia, Castile and León, Extremadura and Andalusia, where savings can reach 12 euros on an average tank of 60 liters. The distribution sector in Portugal warns of the inevitable loss of commercial and tax revenue in the border districts. The National Association of Fuel Retailers has reiterated that the national tax burden suffocates the competitiveness of small independent service stations, and national stations closest to the border face sharp drops in sales volume.
The Portuguese government keeps the weekly compensation mechanism of the Excise Tax on Petroleum Products under evaluation. Political and associative pressure is intensifying for the Ministry of Finance to adopt fiscal measures equivalent to those practiced in Spain, at a time when the difference in the final retail selling price of diesel between the two Iberian countries is widening substantially.
