Spain Cuts Gas Prices and Extends Fuel Discounts Amid Middle East War Fallout

The Spanish government has announced plans to limit natural gas price increases to 15 per cent and extend fuel discounts in an effort to shield consumers from the fallout of the Middle East war.

Economy Minister Carlos Cuerpo said the package aimed to 'extend and adapt' support measures first introduced in March, when US-Israeli strikes on Iran plunged global energy markets into turmoil.

The government has approved a discount of 20 euro cents per litre of petrol and diesel in October, which will progressively decrease to 13 euro cents per litre in November and six cents in December. However, a 'reactivation clause' will be available if prices spike by more than 15 per cent.

Ecological Transition Minister Sara Aagesen had earlier announced the limit on gas price increases, saying that without it, consumers would face a price rise of over 45 per cent starting next month. The price of butane cylinders will also be capped at 19.55 euros.