Drivers in Mallorca and across Spain will pay more to fill up from Wednesday 1 July, when a temporary cut in VAT on fuel comes to an end.
Why prices are rising
In mid-March, the Spanish government cut VAT on petrol and diesel from 21% to 10% in response to the surge in energy prices linked to the conflict involving Iran. The measure was always intended to be temporary, and from 1 July the standard 21% rate returns.
How much more
According to estimates, the change means:
- petrol: about 10 cents more per litre;
- diesel: about 2.8 cents more per litre.
For someone filling a 50-litre tank with petrol, that is around €5 more each time.
Queues at the pumps
On Tuesday 30 June, many petrol stations on the island had queues of cars and motorbikes as drivers rushed to fill up before the higher rate came into effect.
Electricity and gas too
The temporary VAT cut also covered electricity, natural gas, pellets, briquettes and firewood. VAT on these returned from 10% to 21% on 1 June. On the same date, the special tax on electricity, which had been reduced to 0.5%, went back up towards its standard level of around 5%.
| Change | Date |
|---|---|
| VAT on electricity and gas back to 21% | 1 June |
| Electricity tax back to standard rate | 1 June |
| VAT on petrol and diesel back to 21% | 1 July |
Ways to save
- Combine errands to reduce the number of trips.
- Keep your tyres at the right pressure.
- Drive smoothly, avoiding hard acceleration and braking.
- Remove roof racks and boxes when you are not using them.
- Compare prices: there can be significant differences between petrol stations on the island, and the government’s fuel price website lists them.
- For short journeys, consider the bus, a bike or walking.
Fuel in the Balearics is usually more expensive than on the mainland because of the extra cost of transporting it to the islands, so the end of the tax cut will be felt particularly by people who drive every day.
