Spain Limits Gas Price Hikes Amid Energy Crisis Fears

Spain's government is taking measures to shield consumers from soaring energy prices due to the Middle East war and Russia's invasion of Ukraine. The price of natural gas will be capped at a 15% increase, and butane tank prices will be limited to €19.55 ($22). Ecological Transition Minister Sara Aagesen said that if these limits were not implemented, household energy costs would rise by over 45% starting next month.

The government has already approved a package of measures to limit the impact of rising energy costs, which includes a fuel tax break this month. However, it remains to be seen whether this discount will be extended beyond September. According to calculations by Spain's Organisation of Consumers and Users (OCU), people's bills could increase by 54% if the Spanish government does not take action soon.

The measures are aimed at preventing an increase in energy costs from being passed on to food prices, which could lead to a second round of inflation. The government had previously approved a package of around 80 measures to limit the impact, with a total cost of €5 billion, which it says helped 20 million households and three million businesses.