Spain approved a third energy relief package on Sept. 29, limiting regulated gas tariff increases and extending fuel tax cuts until year-end to ease the economic impact of the U.S.-Iran conflict.
Deputy Prime Minister and Economy Minister Carlos Cuerpo said the combined cost of the government’s three packages had exceeded 12 billion euros.
The latest measures will limit October’s regulated gas tariff increase to about 15 percent, compared with more than 45 percent without intervention, according to the government. More than 3 million consumers use the tariff.
The price of a butane cylinder will also be capped at 19.55 euros until June 30, 2027.
Tax reductions on gasoline and diesel will amount to 20 euro cents per liter in October, 13 cents in November and six cents in December. A safeguard clause allows the cuts to return to as much as 20 cents, depending on fuel prices.
A separate diesel subsidy of 20 cents per liter for farmers and livestock producers will continue through the end of the year. The package also extends support for fishing businesses and professional road transport, while introducing aid of 15,000 euros per diesel locomotive for rail freight operators.
Cuerpo said the measures would extend and adapt support for households and businesses as geopolitical risks continued to affect energy prices.
The decree also raises minimum winter storage requirements for liquefied natural gas and strengthens a system for certifying energy savings.
Farm groups COAG and Unión de Uniones said the measures were insufficient and announced plans to hold protests.
