The VAT reduction on fuels came into force this Sunday and is already noticeable at Girona's gas stations, where the average price of gasoline and diesel has fallen in the first days of the measure's application. The reduction is part of the anti-crisis plan approved by the Government due to the conflict in the Middle East and also affects electricity and gas, whose VAT drops from 21% to 10%.
In the province of Girona, the average price of gasoline has gone from 1.816 euros per liter on Saturday to 1.593 euros this Tuesday. That represents an average drop of 22.3 cents per liter. In the case of diesel, the decrease has been from 1.964 euros per liter to 1.786 euros, with an average reduction of 17.8 cents.
Decrease in prices in Girona after the entry into force of the decree
The drop comes after several weeks of price increases. In Catalonia, the liter of 95 gasoline had an average price of 1.712 euros on March 13 and had climbed to 1.809 euros on Friday. With the application of the new tax rate, the relief has begun to be passed on to the consumer at the very start of the week.
The Minister of Inclusion, Social Security and Migration, Elma Saiz, defended that the effect has been noticed since the first day.
"This Sunday the citizenry already saw that the filling of the deposits was speeding up" - Elma Saiz, minister of Inclusion, Social Security and Migrations
Saiz also maintained that, on average, people are paying 20 euros less and framed the decision as the Executive's response to a situation that, he assured, has already cost 5,000 million euros. He also affirmed that the Government will continue working to protect society from the effects of an illegal war.
A plan with immediate measures and medium-term reforms
The approved package includes 80 actions divided into two main axes. One of a conjunctural nature, designed to cushion the immediate effects of the conflict and protect the most exposed sectors. The other has a structural approach and is oriented towards the decarbonization and electrification of the economy.
Most of the measures will be in force until the end of June. The text also incorporates a deactivation clause for tax reductions if prices fall substantially. To decide whether the VAT reduction is maintained, the CPI for electricity, gas, and fuels for April 2026 will be compared with that for April 2025.
Starting in June, the reduction will only continue if that index rises more than 15%. If that threshold is not met, the Government plans to withdraw the tax reduction applied to these energy supplies.
Pending parliamentary backing
Saiz pointed out that it is now up to the parties to decide whether they support the decree of the so-called social shield. The Executive, she said, will try to push it forward with dialogue, an outstretched hand, pedagogy, and explanations. The minister also noted that the second package of measures might not be voted on this week, unlike the decree with energy measures, which is scheduled to reach the plenary.
In that political context, the minister charged against the leader of the PP, Alberto Núñez Feijóo, and criticized the lack of support for the proposed measures. While that debate is resolved in Congress, consumers in Girona are already seeing the first practical effect of the tax reduction in the price they pay when refueling.