How the Government’s measures to pay less for fuel affect you

The Government’s Response Plan to the economic crisis caused by the war in Ukraine includes measures that will help lower fuel prices.

Although the star measure for drivers is, without a doubt, the reduction of 20 euro cents per liter of fuel (of any kind), the Response Plan approved by the Government to mitigate the economic effects of the war in Ukraine includes other measures that will affect, for goodto transportation.

According to the President of the Government, Pedro Sánchez, the package of measures has a budget of 16,000 million euros.

The plan, which will run until June 30, will have an impact of some 6,000 million in direct aid and tax rebates and another 10,000 million in ICO credits to cushion the impact of the crisis.

It is based on five main axes: aid to families, workers and displaced persons; aid to the business fabric; transport measures; cybersecurity measures and energy measures.

Discount of 20 cents/liter on the price of fuel

Of all the measures contemplated in the Executive’s Response Plan, the most anticipated is the reduction in fuel prices.

It will be a universal discount (for all drivers and all fuel types) and direct. In this regard, it has been the Minister of Finance, María Jesús Montero, who has explained how the discount will be applied, in advance, which will be applied to the prices of the pumps; so that drivers who arrive at the gas station will see and pay the prices with the discount.

The drop in the price of diesel and gas oilwhich can mean an average saving of 10 euros per deposit, will become effective on April 1 and will be in force until June 30 (more if the situation requires it).

The Government will assume 15 of the 20 cents of reduction, while the remaining five will be borne by the service stations. This part may be greater since there are already oil companies that have launched their own offers that will be added to the official.

Gas price cap

In regards to the energy part of the War Response Planit is contemplated to set a cap on the price of gas (it has not been specified, for the moment, how much).

In the words of Sánchez, this will mean “significantly lowering electricity prices immediately and without” distorting the electricity market in Europe”.

As far as drivers are concerned, lowering the price of gas should influence that of fuelsespecially that of diesel, although the effect of the measure will not be noticed immediately.

There are also measures to curb the rise in the price of electricity, such as the extension until June 30 of the mechanism to reduce the excess benefits of electricity companies and the extension until June 30 of the tax reduction on electricity. This will benefit electric car users.

Aid to carriers

Last week at an emergency meeting to try to put an end to the carriers’ strike The Minister of Transport, Raquel Sánchez, announced that the Response Plan includes the approval of a new fund of 450 million euros for direct aid to freight and passenger transport companies.

These will be distributed according to the type of vehicle, as follows: 1,250 euros per truck, 900 per bus, 500 per van and 300 per taxi, VTC or ambulance.

In addition, the term of tax refund on hydrocarbons. With this, professionals receive 4.9 cents from the Treasury for each liter of professional diesel they have refueled.

And the commitment to pass a law that allows carriers to work with a price that does not entail losses is maintained.

Measures beyond transportation

There is more. The Response Plan contemplates measures that go beyond transportation.

There are, however, from which companies in the sector will also be able to benefit, such as a new ICO credit guarantee line for 10,000 million euros to cover liquidity needs caused by the temporary increase in the cost of energy and fuel.

Or a new National Cybersecurity Plan with more than 150 essential actions, endowed with more than 1,000 million euros.

There is also a veto on dismissals; the revisions of the rises in the prices of housing rental contracts are limited to 2% in the next three months; and the amount of the Minimum Vital Income (IMV) is increased by 15% to reach more vulnerable families.

This article was published in Autobild by Noelia López.