Spain Caps Gas Price Hikes, Extends Fuel Discounts Amid Energy Crisis

Spain's 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. The move comes as global markets continue to be affected by the conflict triggered by US-Israeli strikes on Iran.

Economy Minister Carlos Cuerpo explained that the package aims to 'extend and adapt' support measures first taken in March, which were designed to help households and businesses cope with spiraling energy prices. The discounts will decrease progressively from 20 euro cents per liter of petrol and diesel in October to six cents by December.

However, a 'reactivation clause' will be available if prices spike by more than 15 percent, Cuerpo noted. Ecological Transition Minister Sara Aagesen had earlier announced the limit to gas price spikes as EU ministers met in Dublin to discuss preparations for the upcoming winter.