Gradual phase-out of aid for the Middle East energy crisis

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1. Fuel tax cuts are phased out gradually: they drop by 15 euro cents per liter in July, 10 in August and 5 in September for gasoline and diesel. If the CPI for these products rises more than 15 percent over the previous year, the cuts will be larger.
2. The reduced 10 percent VAT on electricity and gas, and the reduced Electricity Tax rate, expired in June, but they come back in August and September if the CPI for electricity or gas rises more than 15 percent.
3. Power companies will see the tax base of the tax on the value of electricity production reduced in 2026 (30 percent in the third quarter and 40 percent in the fourth). The tax rate will be 3.5 percent in 2027 and 0 percent from 2028 on.
4. Aid for farm and fishing diesel is extended until September 30, 2026, and the per-hectare amounts of the fertilizer aid are raised (38.33 euros for dryland and 92.50 for irrigated land).
5. Road freight carriers with the partial fuel tax refund get aid of 10 euro cents per liter in July, 15 in August and 20 in September. Those without that right (taxis, buses, vans and others) get direct aid per vehicle, which can be requested from September 1 to October 30, 2026.
6. Aid is set up for rail freight companies with diesel locomotives, and the aid system for regular coastal shipping is extended for three months from June 22, 2026.
7. Companies receiving this aid may not lay off workers for force majeure or for economic, technical, organizational or production reasons stemming from this crisis until September 30, 2026. If they do, they must return the aid and the dismissal is void.
8. Fuel price oversight is strengthened: the CNMCCNMC National Markets and Competition Commission: the public body that watches over well-functioning markets and fair prices. can demand information from operators, will closely track distribution margins, and will publish a list of gas stations with possibly anomalous behavior, which consumers can use in their complaints.

Who it affects

• Households and consumers: They benefit from the gradual fuel tax cuts and, if prices spike, from the return of reduced VAT on electricity and gas.
• Farmers, livestock breeders and fishers: Extension of farm and fishing diesel aid and a larger fertilizer aid until September 30, 2026.
• Road transport companies: Aid per liter of diesel or per vehicle depending on their type, paid through the Tax Agency.
• Rail and shipping companies: New aid per diesel locomotive and extension of aid to regular maritime lines.
• Workers at aided companies: Protection against crisis-related layoffs until September 30, 2026.

Words worth knowing

Real decreto-ley (royal decree-law)

A rule with the force of law that the Government can pass urgently, without prior parliamentary approval, though Congress must later validate it.

Impuesto sobre Hidrocarburos (hydrocarbons tax)

A special tax on gasoline, diesel and other fuels; cutting it lowers the price at the pump.

IPC (CPI)

Consumer Price Index: it measures how much consumer prices rise.

Bono social (social bonus)

A discount on the electricity bill for low-income or vulnerable households.

CNMC

National Markets and Competition Commission: the public body that watches over well-functioning markets and fair prices.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries