Spain Caps Gas Price Hikes Amid Ongoing Energy Crisis

The Spanish government has announced plans to cap natural gas price increases at 15 percent and extend fuel discounts in an effort to shield consumers from rising energy costs triggered by the Middle East conflict.

Economy Minister Carlos Cuerpo said the package aims to 'extend and adapt' support measures first introduced in March, which helped 20 million households and three million businesses.

The discounts will remain at 20 euro cents ($0.23) per litre of petrol and diesel for October before progressively decreasing to 13 euros cents per litre in November and six euros cents in December.

A 'reactivation clause' will be triggered if prices spike by more than 15 percent, allowing the government to intervene further.

The price of butane tanks used by many households for cooking and heating will also be capped at 19.55 euros.

'If we didn't put these limits, the price for consumers, for households, would rise by more than 45 percent starting next month,' said Ecological Transition Minister Sara Aagesen.