Spain Caps Regulated Gas Prices Amid Middle East Crisis

The Spanish government has announced plans to limit the increase in regulated gas and butane cylinder prices as part of its response to the Middle East crisis. The measure aims to protect consumers from strong energy price volatility ahead of next winter, according to Minister for Ecological Transition and Demographic Challenge Sara Aagesen.

The cap on the regulated natural gas tariff will be set at 15% maximum allowed increase, while the price of the butane cylinder will remain capped at 19.55 euros. This move is part of a new package of actions by the Executive to address the crisis and follows similar measures taken in response to the war in Ukraine.

Aagesen noted that without these limits, household gas tariffs would rise above 45% next month. The government has used this type of limit before, during the previous energy crisis caused by the invasion of Ukraine, and is now repeating it to mitigate the impact on consumers.