The discount of 20 cents per liter of fuel will come into effect on April 1st, will be available to all consumers, will be applicable until June 30th and will have a budgetary impact of some 1,423 million euros, according to calculations by the Ministry of Finance.
What type of fuel will qualify for the discount?
According to the royal decree with a shock plan of measures against the effects of the war approved on Tuesday in the Council of Ministers, the products that qualify for the discount will be petrol, diesel A and B, diesel for maritime use, liquefied petroleum gases for vehicle use, liquefied compressed natural gas for vehicles, liquefied natural gas, bioethanol, biodiesel, as well as blends of petrol with bioethanol or diesel with biodiesel that require specific labelling. The purchase of the additive AdBlue also qualifies for the bonus.
Who pays the rebate?
The rebate promoted by this Royal Decree-Law amounts to 0.20 euros per liter or per kilo of fuel refueled both by private users and by companies and the self-employed. Of this rebate, 15 cents will be covered by the State Budget. Fuel operators with refining capacity in Spain and an annual turnover of more than 750 million euros must add 5 cents to the discount (20 cents in total). Operators who, before April 1st, communicate their willingness to give a discount greater than 5 cents through any other mechanism, such as loyalty cards, will not be obliged to meet this requirement. This has already been announced by Repsol, Cepsa and EDP. In the event that there is no discount from the operator (because it does not have refining capacity in Spain or has a turnover of less than 750 million, the State will assume the total amount of the 20 cents discount.
Will the discount appear on the fuel receipt?
The discount will be applied at the point of sale and refueling. For each supply carried out under the conditions that involve the application of the rebate, a discount equivalent to the amount of the rebate will be applied to the final invoice, including taxes. The purchase receipt shall show the amount of the operation, distinguishing the price before applying the discount and after applying the rebate, as well as the amount of the rebate applied and an express reference to the royal decree law.
How will it be managed by fuel stations?
Operators will be able to request a refund of the discounts applied. To do so, they must submit a monthly application for the refund of the rebates applied in the previous month, within the first fifteen calendar days of May, June and July, through the Electronic Headquarters of the State Tax Administration Agency (AEAT) or the corresponding regional administration. In any case, before April 15th 2022, the operator may apply to the tax administration for an advance payment on account for an amount equivalent to 90% of the average monthly sales volume, with a maximum of two million euros and a minimum of 1,000 euros.
How much will housholds save?
According to OCU calculations, for an average household the rebate will mean a saving of 65 euros in the case of diesel and 75 euros in the case of petrol over the next three months. OCU denounces that, in spite of the reduction, fuel prices will continue to be much higher than the prices they were at the beginning of the year. The National Commission for Markets and Competition (CNMC) will be responsible for monitoring that the 20 cents per liter of fuel bonus reaches all drivers in full and will keeping a close eye on the margins of the companies.
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