Diesel increases its discount to 20 cents in September and gasoline drops to 5
The increase in the price of diesel by 15.7% in July activates the safeguard clause of the royal decree law
Quick Look
As of September 1, the discount on the hydrocarbon tax for diesel increases to 20 cents per liter after becoming more expensive by 15.7% in July, while that of gasoline is reduced to 5 cents per liter due to the application of the safeguard clause.
AI-generated summary
Why It Matters
The royal decree law of the end of June reformulated tax aid for fuels, establishing a gradual withdrawal with a safeguard clause.
Starting Tuesday, September 1, automotive diesel will enjoy a discount on the hydrocarbon tax of 20 cents per liter, double the amount applied during the month of August (10 cents per liter), after this fuel became more expensive by 15.7% in July.
Instead, the discount applied to the hydrocarbon tax on gasoline will be reduced from 10 cents per liter in August to 5 cents per liter in September, as part of the gradual withdrawal of the support measures provided for in the response plan to the consequences of the conflict in the Middle East.
The royal decree law approved at the end of June reformulated the tax aid for fuels that had been in force since March, so that the VAT returned to the general rate of 21% and the bonuses were concentrated on the hydrocarbon tax, with a decreasing discount (15 cents per liter in July, 10 cents in August and 5 cents in September).
The decree itself established that this progressive withdrawal of support measures could be interrupted if there was a significant increase in fuel prices, for which it regulated a safeguard clause.
Under this clause, if the consumer price index (CPI) for gasoline or diesel exceeded 15% in June, an extended discount of 20 cents per liter would be activated in August and if it did so in July, it would be applied in September.
In June, gasoline and diesel inflation remained below that 15% threshold, so the progressive withdrawal of the discount advanced, but in July diesel became 15.7% more expensive, so the clause was activated automatically.
Thus, as of September 1, the hydrocarbon tax on diesel will be reduced by 20 cents per liter, while the discount on gasoline will be only 5 cents per liter, since this fuel became more expensive by 7.3% in July, far from the 15% threshold that activates the clause.
The advance inflation data for August shows a new increase in fuel prices - still unquantified until the complete indicator is published - but the decree does not foresee that the August CPI will activate new discounts.
In fact, the response plan only foresees the application of these aid measures until the end of September, although the Government assures that it "maintains minute-by-minute monitoring of the impact of the conflict in Iran on the Spanish economy."
What to Watch
AI outlook — possibilities, not facts
Application of the discount of 20 cents on diesel and 5 cents on gasoline from September 1.
Very likely · Within days
Open Questions
- What impact will the advance inflation data for August have?
- Will aid continue beyond September?
