Refuelling will be somewhat easier for drivers in Valencia starting today, Thursday 1st October. Petrol is kicking off October with a reduction of 20 cents per litre, whilst the discount applied to diesel remains at the same amount. The measure forms part of the new package of aid approved by the government and arrives just when fuel prices were putting severe pressure on the pockets of citizens.
However, there is a date to keep in mind: the discount will not be the same throughout the remainder of the year. The new rule establishes a progressive reduction of the reduction during November and December, although drivers will be able to benefit once again from the 20 cents if prices surge back up again.
The key lies in a figure: 15%. That is the limit set by the government to determine when the maximum reduction on the Special Hydrocarbons Tax is activated. If the price of petrol or diesel registers a year-on-year increase exceeding that percentage, the discount becomes 20 cents per litre.
The latest available data has left both fuels above that threshold. According to August figures published by the National Statistics Institute, diesel became 30% more expensive compared to the same period of the previous year and petrol by 17%. Therefore, throughout October, both petrol and diesel will feature the 20 cents per litre reduction.
The discount will drop after October. The aid, however, has an expiry date and is designed to be progressively reduced. The new decree maintains the measures until 31st December, but establishes different amounts for the final months of the year. If the evolution of prices allows the increase in fuel prices to be placed below 15%, in November the reduction will be 13 cents per litre. In December it will be reduced once again and remain at 6 cents.
Yet here is where the protection mechanism included in the decree comes into play. If prices surpass a 15% year-on-year increase once more, the reduction will be able to return to 20 cents per litre. In other words, the amount discounted when refuelling during November and December will depend on how prices evolve. The rule allows the discount to be lowered if the situation moderates, but also permits it to rise again if a new escalation occurs.
The fuel reduction forms part of the third package of measures approved by the Council of Ministers to deal with the rise in the cost of living derived from the conflict in the Middle East. The new decree replaces the measures that were in force until the end of September and extends the aid until the final day of the year.
In addition to the discounts on petrol and diesel, the package keeps the regulated gas tariff and the price of the butane gas cylinder capped. In total, the government calculates that this set of measures will mobilise more than 12000000000€ of public funds, with the objective of supporting the most vulnerable families and companies whilst advancing in electrification and energy independence at the same time.
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