Spain Petrol Prices Set to Soar as Tax Cuts are Phased Out

Petrol prices in Spain are set to increase significantly due to the government's decision to phase out temporary tax cuts introduced after the Iran conflict. The price of filling up a tank could rise by €5-€10. Global oil costs hit $100 per barrel last week, but have since fallen back to over $86.

The government has been gradually reducing the pump aid discount from 15 cents per litre in July, with further reductions planned for August and September. There are currently no indications that this phase-out will be halted or changed.

Despite the potential price hikes, petrol remains around 10% lower than the European Union average, and prices can still vary significantly depending on the region and type of fuel used.