New Measures and Price Caps for the Energy Market from Spain
The Spanish government capped gas tariffs and extended fuel discounts until the end of the year to mitigate the economic impacts of geopolitical risks.
The Spanish government approved a comprehensive package of measures introducing a ceiling on gas prices and extending fuel discounts to reduce the spillover effects of the US-Iran tension on the economy.
Package Approved by the Council of Ministers
Spain's minority left-wing coalition government implemented its third package of measures aimed at mitigating the negative effects of the US-Iran tension.
Decisions on Limiting Energy Prices
First Deputy Prime Minister and Minister of Economy Carlos Cuerpo announced that the decisions include capping increases in gas tariffs.
The rate of increase in regulated gas tariffs was capped at 35 percent in October and 15 percent in subsequent periods.
Fuel and Butane Gas Support
Fuel prices are projected to be discounted by 20 cents per liter in October, 13 cents in November, and 6 cents in December.
A price ceiling of 19.55 euros was introduced for a cylinder of butane gas until June 2027.
Support for Agriculture and Transportation Sectors
The diesel support of 20 cents per liter was extended for farmers, livestock breeders, boat owners, and professional road transport operators.
It was announced that a new rail freight transport support of 15,000 euros per diesel locomotive will be provided.
Total Cost of the Decree
Carlos Cuerpo stated that the total cost of the three decrees issued so far against the tensions in the Middle East exceeds 12 billion euros.
Sectoral Reactions and Protest Decisions
Finding the measures announced by the government insufficient, the Coordination of Farmers and Livestock Breeders Organizations and the Union of Unions will hold demonstrations.