When you’re pinching the pennies, it’s important to be able to budget for every expense. Unfortunately for Spanish residents, uncertainty on fuel prices has made budgeting for fuel a tricky process.
Since the beginning of July, prices at the pump have shot through the roof in order to reap the benefits of the holiday period. Current fuel prices are close to exceeding the record highs that were experienced in the nation last April.
Close to 41 million vehicles are expected to travel on Spain’s roads over the busy summer months and the government, who are constantly searching for ways to raise capital, have chosen to increase prices to reap the benefits. Petrol prices have risen by 9 per cent and diesel by 8.56 per cent.
Although prices are expected to fall in September once the holidays are over, Sedigas, the governing body of Spain’s Gas suppliers has warned that the price of gas could rise by up to 10 per cent if the government implements a proposed “green cent” tax.
This “green tax” will not be accepted without a fight, with opposition to the tax claiming that it is “discriminatory” and that it “will distort the market, reducing competition in the energy sector”.
Sedigas have requested an urgent meeting with the government as they are concerned about far-reaching effects of the negative impact on the gas industry which employs 150,000 people and represents 0.5 per cent of the country’s gross national product.
This latest development would be the latest in a line of commodities which have attracted the same tax and follows an increase of IVA (VAT) to 21 per cent in September.
For details of property in Spain, visit the Spanish listings on Rightmove Overseas. One way to save money when buying in Spain is to use a currency specialist when transferring your pounds into euros to complete the purchase of your property. For more information on this, contact Smart Currency Exchange or visit the Currency Zone.
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