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Wednesday, December 4, 2024

The 20 cent fuel discount starts today: How does it work?

The fuel discount will run until June 30th. Here's how it works

The 20 cent per liter fuel discount that comes 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 qualifies for the fuel discount?

According to the royal decree with a shock plan of measures against the effects of the war which was approved on Tuesday in the Council of Ministers, the products that qualify for the fuel discount will be the petrol, diesel A and B, gas oil 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 gasoline with bioethanol or gas oil with biodiesel that require specific labeling. The purchase of the AdBlue additive 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 provide a discount greater than 5 cents by any other means, 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 cent fuel discount.

Will the fuel discount appear on the receipt?

The fuel discount will be applied at the point of sale and refueling. For each refuling made under the conditions that imply the application of the rebate, a discount will be made on the final invoice, including taxes, equivalent to the amount of the rebate. The purchase receipt will 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 the 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 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 claims that, in spite of the reduction, fuel prices will continue to be much higher than prices at the beginning of the year. The National Commission for Markets and Competition (CNMC) will be responsible for monitoring that the 20 cent per liter fuel bonus reaches all drivers in full and will watching companies’ margins closely.

For the full article, please visit Diario de Ibiza website here.

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