Spain Adjusts Fuel Subsidies: Diesel Aid Increases as Gasoline Support Is Halved

Spain is changing its fuel subsidy policy starting this Tuesday, creating a clear divide between how diesel and gasoline are taxed. Under the rules of Royal Decree 7/2026, the government is adjusting aid based on how much wholesale prices fluctuate.

Diesel drivers will see the biggest change, with their subsidy rising to 20 cents per liter. This increase is a direct response to the 15% price hike diesel saw in July. For the average driver, this means saving about 10 euros on a 50-liter tank, helping to ease the financial strain on both private motorists and professional transport services.

In contrast, gasoline subsidies are being cut in half, dropping from 10 cents to 5 cents. This reduction is due to the government’s specific price thresholds: because gasoline prices rose by 7.3% in July—falling short of the 15% increase required to trigger higher aid—the subsidy has been reduced.

These subsidies were introduced as a temporary way to help households and businesses manage rising energy costs, but they are now being gradually phased out. As the rules stand, these bonuses are set to end in October. Unless the government decides to extend the program or change the criteria, September will likely be the final month for these fuel discounts. The policy highlights the ongoing challenge of balancing government spending with the need to protect consumers from volatile global oil markets.