As 2023 ended a temporary fuel discount, costs shifted for drivers in Canada and the US

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When the temporary fuel discount faded in 2023, drivers felt the bite at the pump

The 20-cent per liter reduction, originally aimed at professionals in transport, agriculture, and fishing, came to an end. The change influenced how consumers filled up and how much they paid at the pump. In Alicante, the shift was noticed quickly as residents hurried to top up before the bonus period closed. Below is a look at what many drivers found affordable in the city as fuel prices adjusted in the wake of the discount.

A man refuels at a gas station.

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Gasoline grade 95 has hovered around 1.578 euros per liter, while diesel sits near 1.654 euros per liter. These figures reflect a downward move since the government first issued the bonus. Earlier, right after the policy launched, prices were higher, with gasoline near 1.812 euros and diesel around 1.812 euros per liter.

€107 million

The government had approved a 20-cent-per-liter bonus for fuel, then scaled down to 10 cents in the second quarter for carriers. The subsidy is projected to cost the state coffers 107 million euros in the first half of the year. The decree appeared in the Official State Gazette (BOE) on a recent Wednesday. Maximum assistance amounts included 2,700 euros per truck over 7.5 tons for diesel, 1,500 euros per bus, 450 euros per ambulance, and 300 euros per taxi.

Gas stations anticipate a roughly 10% drop in consumption after the discount ends. When the premium covers the whole population from April through December, overall costs are expected to exceed 4,000 million euros for individual customers. In addition to the diesel and gasoline reductions, fleets powered by gas will receive 27 cents per liter until March and 14 cents per liter in the second quarter, reflecting the special gas price conditions at that time. For heavy trucks, the benefit stands at 3,690 euros; for LPG, CNG, or LNG buses, 2,050 euros; and for taxis powered by these energies, 410 euros.

Carrier fleets using professional diesel would receive the discount at the end of each month. Those not enrolled needed to file a claim through the electronic center of the State Tax Administration between February 1 and March 31, 2023. The assistance is paid as a single estimated payment for six months after approval. Fuel prices had been easing in recent months, with diesel around 1.6 euros and gasoline near 1.5 euros, compared with peaks of about 2.1 euros and 2.15 euros reached earlier in the year.

Readers should note that the end of the program altered the budgeting for many households and fleets. For individuals, the price environment remained volatile, with monthly fluctuations tied to global oil markets and local tax policies. Fleets that embraced alternative fuels or more efficient routes began to reassess cost structures as the discount faded from the pricing landscape. The broader takeaway is clear: government support can cushion short-term expenses, but changes in policy ripple through to everyday driving costs and planning.

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