Drivers across the Costa Blanca could soon pay more at the pump as a temporary fuel tax break on petrol and diesel approaches its scheduled end date on 30 June.
The Spanish government introduced the tax cut earlier this year as part of a package of measures to help households and businesses manage rising energy costs. Unless ministers extend the scheme, motorists could see fuel prices increase from 1 July.
Why fuel prices could increase
In March, the government reduced VAT on petrol and diesel from 21% to 10% as part of a wider energy support package.
Officials introduced the measures after sharp increases in fuel and energy prices linked to international tensions and higher oil costs.
While the government ended VAT reductions on electricity and gas on 1 June, it has kept fuel support measures in place until 30 June.
If ministers allow the fuel tax relief to expire, drivers will likely pay more each time they fill up.
How much could prices rise?
The size of any increase will depend on global oil prices and market conditions.
When the government introduced the VAT reduction, it estimated that the measure reduced fuel costs by up to €0.30 per litre for some fuels.
If prices rise by a similar amount, filling a typical 50-litre tank could cost around €15 more.
Fuel tax break
Despite the potential increase, fuel prices in Spain remain below the European Union average.
At the start of June, average petrol prices stood at around €1.55 per litre, while diesel averaged approximately €1.65 per litre.
Recent price declines have also helped ease some of the pressure on motorists.
Costa Blanca drivers face a summer decision
The timing could prove challenging for many Costa Blanca residents.
The possible increase would arrive just as the busy summer holiday season begins, bringing more travel, heavier traffic and a surge in visitor numbers across the region.
So far, the government has not confirmed whether it will extend the fuel support measures beyond 30 June. Officials continue to monitor energy markets and economic conditions before making a final decision.
What happens next?
Motorists can continue to benefit from the lower VAT rate throughout June.
However, unless the government announces a further extension, fuel prices could rise again at the beginning of July.
