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Diesel Rebound Erases Much of Spain’s Fuel VAT Cut

New EU data confirm a diesel rise that is squeezing drivers in high-priced areas.

Overview

  • The EU Oil Bulletin, which reported Thursday, put Spain’s average diesel at €1.813 per litre, up 2% week over week, and gasoline 95 at €1.553 with no change.
  • Rising diesel prices are eating into the government’s recent VAT cut on fuel, shrinking the price relief many drivers saw after it began.
  • Extremadura shows a wide spread, with diesel ranging from €1.692 to €2.005 per litre and gasoline 95 between about €1.420 and €1.499.
  • In Gipuzkoa, Hondarribia stations list diesel at €1.936 per litre, drawing many French motorists to cross the border to fill up.
  • Price gaps often reflect station brand, location and local competition, which can steer drivers to cheaper towns and leave neighbors paying very different bills for the same fuel.