SPAIN’s government plans to splurge €16 billion to help businesses and households suffering through high fuel and power costs.

The most eye-catching proposal is to reduce the price of petrol and diesel by 20 cents a litre. The government will absorb the cost of a 15 cent reduction, with oil companies contributing five cents per litre.

petrol pump fuel
Fuel prices have soared. Photo: Cordon Press

The measures would initially apply until June 30 and are set to be officially approved by the Cabinet on March 28, with them applying untill June 30.

Spain’s transport sector has been hit by an ongoing truck-drivers’ strike called by independent hauliers in protest at fuel prices, which have soared since the start of the Russian invasion of Ukraine.

Energy bills have also risen sharply in the past few months.

The Spanish government has now joined forces with Portugal to find a way to decouple electricity prices from the the cost of gas.

At an EU summit on Friday the Iberian nations negotiated special regulations allowing them to cap the price of gas.


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