Drivers learned to factor in the fuel price changes before refueling. The removal of a 20 cent discount came as fuel prices rose under government measures, pushing a typical fill to cost more at stations in less than a month. In practical terms, filling a full tank has become roughly 20% more expensive. For a standard tourist tank, the current price for oil now adds about 13.5 euros for a usual 55 liters, a figure higher than year-end values, with petrol 95 hovering around 15 euros more than December 31.
Consumer associations have taken note of this, arguing that the measure ended too soon and that households faced higher costs due to the VAT reduction not producing meaningful savings. Avacu’s chair and other observers highlight that some goods see only a couple of euros in savings per purchase, underscoring the modest impact of the change for everyday shoppers.
For gasoline 95, the official price displayed at pumps was around 1.591 euros per liter, rising to 1.666 euros last Sunday according to data from the Ministry of Ecological Transition. This marks a 7.5 cent increase on top of the 20 cent discount that vanished, translating to nearly a 19.7% rise compared with the year’s end. Prices are also about 8% higher than the same dates in 2022, though they are far from the peak seen at the start of the Ukraine conflict, which reached roughly 2.114 euros per liter at the high point.
Diesel followed a similar trajectory. The price at the pump exceeded 1.661 euros and moved to about 1.702 euros, reflecting a 16.4% rise with the discount gone. Analysts note Russian supply interruptions played a major role, pushing diesel above gasoline historically. Projections suggest further increases as sanctions on the Putin regime intensify.
Service stations, meanwhile, did not enjoy a banner month. While drivers rushed to stock up at the end of the discount period, early-year sales declined. As days pass, volumes have remained below pre-pandemic levels. Emilio Córcoles, head of the Provincial Service Stations Association, cites deeper factors such as shifting consumer habits. With inflation, younger drivers are traveling less, and many people use public transport or carpool to save money.
Avacu representatives argue that the government moved too quickly to end the general discount, noting that it remains in effect for transport, agriculture, and fisheries programs. They say the impact should have been weighed against a stabilized CPI in the 3 to 4 percent range. The financial relief, they contend, was intended to help commuters rather than food costs, and the VAT reduction did not offset price increases as hoped. In January, the CPI nudged upward after a period of decline, suggesting the adjustment is easing but not fully reversed.
A more cumbersome system for professionals
For professional users, including shippers, farmers, and fishermen, the 20 cent discount still applies but with changes. Instead of a direct discount at refueling, eligible professionals must now file for a refund through the tax authorities. The new system is seen as practical but burdensome, requiring dedicated staff to address questions and issues. The discount is limited to vehicles above a 7,500 pound maximum weight for direct application, while lighter vehicles receive a fixed amount in the coming months. Professional registrants must enroll in the tax office’s professional diesel deduction program, a step many carriers have not yet completed. The discount covers only freight transport companies and cannot be applied to fleets with their own transport.
These developments reflect a broader shift in how fuel support is managed and who benefits most. The changes aim to balance fiscal considerations with ongoing needs in transportation and logistics, but the real impact on daily costs varies by household and profession. As markets adjust, observers expect continued pressure on pump prices amid geopolitical tensions and evolving policy responses. In the analysis of consumer groups, the effect is nuanced, with some relief visible in certain sectors and limited gains in others, underscoring the persistent challenge of translating policy into meaningful savings for most consumers. Attribution: data from the Ministry of Ecological Transition and reports from consumer associations.