The Plenary Session of the Congress of Deputies approved this Thursday, with 175 votes in favor (140 abstentions and 33 against), the validation of the royal decree of measures in response to the war in the Middle East. This regulation, approved by the Council of Ministers on June 29, includes fuel discounts that will be progressively withdrawn for families until their elimination in October, while they are maintained for farmers, transporters, and fishermen. In addition, the progressive elimination of the tax on energy production will be carried out, a measure that has been demanded by PP and Junts, and applauded by CEOE.
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In his defense of the regulation in the lower house this morning, Vice President Cuerpo assured that, thanks to the measures taken after the start of the conflict (in March), the average inflation rates have been one point lower than they would have been without them. He said that “the plan has cushioned prices by more than 60%.” And he added that the service station market is highly competitive, as they have not appropriated the aid.
Popular deputy Jaime de Olano reproached Cuerpo that the Ministry of Economy has presented up to seven royal decrees of economic measures “and not a single law,” criticized that prices have risen by 26% with the current Government, and concluded that this executive initiative does not protect Spain from the crisis, but rather protects Sánchez’s Government.
For his part, Josep Maria Cruset, from Junts, reaffirmed that his parliamentary group will vote in favor, but insisted that the measures are not enough and criticized, for example, that with electricity VAT back at 21%, “there are families who are suffering from the heat this summer, for fear of the bill.” Cruset also highlighted the need to approve a royal decree every time there is a problem and asked Cuerpo for structural solutions and strategic vision.
If the conflict worsened, the 20 cents per liter reduction would be reinstated
After the approval in March of that first plan with a series of measures that expired at the end of June and, given the continuity of the conflict and tensions in energy prices, the Government opted for this second package that was to be debated in Congress within thirty days.
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Regarding fuels, VAT has returned to the 21% rate, but the special hydrocarbon tax (IEH) has been reduced, with a reduction of 15 cents per liter during July; 10 cents per liter in August, and 5 cents per liter in September, until it disappears in October. However, if the conflict worsened, there is an automatic reactivation clause by which the Government would allow the 20 cents per liter reduction to be reinstated. It would be implemented if fuel inflation exceeded 15%.
In addition, the discount equivalent to 20 cents per liter is maintained for farmers, fishermen, and transporters until next September 30.
In parallel, the tax on the value of electricity production (IVPEE), which taxed the bill by 7%, will be definitively eliminated. It will now remain at an average of 5% in 2026, and 3.5% during 2027, until it is eliminated in 2028. The Government has calculated that the elimination of this tax will allow the industry to increase its production by 2.6 billion euros annually and create some 3,700 jobs.
Likewise, the control and transparency mechanism for gas station prices will be strengthened, with more powers for the CNMC, which will publish lists of establishments with “anomalous behaviors.” So far, only 52 gas stations with this type of behavior have been identified.
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