{"id":959812,"date":"2026-05-14T18:09:15","date_gmt":"2026-05-14T18:09:15","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/959812\/"},"modified":"2026-05-14T18:09:15","modified_gmt":"2026-05-14T18:09:15","slug":"spain-suspends-electricity-and-gas-tax-cuts-it-applies-due-to-iran-war-on-1-june-because-of-falling-prices","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/959812\/","title":{"rendered":"Spain suspends electricity and gas tax cuts it applies due to Iran war on 1 June because of falling prices"},"content":{"rendered":"

Spanish households will no longer have access to the tax cuts on electricity and gas that the government approved in March<\/a> to address a possible spike in inflation due to the escalating conflict in Iran. The tax relief on fuel, however, will last at least until the end of June, when the anti-crisis package expires.<\/p>\n

This is because the government made the tax measures contingent on the final CPI figure for April for each of its components (electricity, gas and fuels) not exceeding the CPI for April 2025 by more than 15%.<\/p>\n

As the national institute of statistics confirmed on Tuesday, the price of electricity fell by 4.3% in April and the price of natural gas by 9.6%, meaning the conditions for the tax cuts to continue no longer apply.<\/p>\n

From 1 June, Spanish residents will no longer be able to enjoy the discounts on the special tax on electricity or the 10% IVA applicable to electricity and natural gas, briquettes, pellets and firewood, which will return to 21%.<\/p>\n

Fuel tax cuts, however, will remain in force until 30 June after prices for personal vehicle fuels rose above the 15% threshold in April because of the impact of the Iran war on international markets. Liquid fuels and diesel recorded the sharpest year-on-year increases in April, rising by 51.7% and 28.2% respectively.<\/p>\n

The government will therefore continue to apply 10% IVA on petrol, diesel and biofuels, along with lower rates under the hydrocarbons tax for the most widely used products, including diesel and unleaded petrol. Professional diesel users will also continue to receive a rebate of 20 cents per litre.<\/p>\n

The government will also keep the tax on the value of electricity production (IVPEE) suspended until 30 June, a measure that will likely save businesses 450 million euros.<\/p>\n

Other sector-specific measures will also remain in force, including aid for farmers and transport operators, as well as enhanced discounts under the social electricity tariff scheme. Vulnerable consumers currently receive a 42.5% discount, while severely vulnerable households receive 57.5%.<\/p>\n

\nCore inflation remains at 2.8%\n<\/p>\n

Lower electricity and natural gas prices helped keep inflation at 3.2% in April, two tenths lower than the previous month and in line with the preliminary figure. Core inflation, which excludes energy and unprocessed food, also held steady at 2.8% in April, one tenth lower than the previous month.<\/p>\n

The Economy Ministry said inflation remains under control thanks to the government’s “renewable shield” and the response package following the conflict in Iran.<\/p>\n

Without the anti-crisis measures, the ministry said fuel inflation in April would have reached 28.9%, meaning the measures reduced it by more than 16%. Overall, the government estimates the response plan lowered headline inflation by close to one percentage point.<\/p>\n

The effects of the government’s response package aimed at containing inflation linked to the conflict in Iran are therefore beginning to show. At the end of March, the government announced cuts to energy, fuel and gas taxes as part of an anti-crisis package containing up to 80 measures<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Spanish households will no longer have access to the tax cuts on electricity and gas that the government…\n","protected":false},"author":2,"featured_media":959813,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5312],"tags":[5176,194813,14828,15273,1312,2000,299,89278,5435,774,13789,16678,104,58139,771],"class_list":{"0":"post-959812","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-spain","8":"tag-and","9":"tag-because","10":"tag-discounts","11":"tag-due","12":"tag-electricity","13":"tag-eu","14":"tag-europe","15":"tag-falling","16":"tag-gas","17":"tag-iran","18":"tag-june","19":"tag-prices","20":"tag-spain","21":"tag-suspends","22":"tag-war"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116574274542514943","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/959812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=959812"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/959812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/959813"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=959812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=959812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=959812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}