The Spanish government has approved a new package of measures to address the economic impacts of the war in Iran, which includes imposing fines on oil companies of up to six million euros if they fail to comply with the information required by the National Commission for Markets and Competition (CNMC). This package also involves reducing the value-added tax (VAT) on fuel from 21% to 10%, along with decreasing the hydrocarbon tax.
This governmental initiative aims to ensure that distributors do not exploit these reductions to increase their profit margins, thus ensuring that real benefits reach consumers. Major companies, including those that import and refine oil and service stations, are required to provide detailed data on prices, sales volumes, and costs.
Medium and large companies distributing and producing petroleum products in Spain must submit weekly reports on raw material purchase costs and the prices at which they sold to fuel stations, whether owned or independent, for three months. This data will be sent to the Ministries of Economy, Finance, and Energy.
According to the text of the resolution, non-compliance with information requirements is considered a serious violation, which could lead to fines of up to six million euros. The resolution grants the government the right to seek recommendations from CNMC regarding the development of profit margins for economic actors involved in the fuel value chain.
Fuel stations are also required to clearly announce the approved tax reductions through their signage. The Spanish parliament is set to vote on this resolution next week after its issuance on Sunday.
This comes amidst a worsening energy crisis in the region, where the profit margins of oil companies have significantly increased in recent months, putting the government under pressure to take further measures to compensate citizens for the price hikes resulting from the war in Ukraine. The markets have been significantly affected by rising oil prices due to political disputes, with European benchmark Brent crude prices exceeding $100 per barrel.
The government confirms that procedures will be adjusted based on the negative developments of the crisis. This program has allocated 5 billion euros, which also includes tax reductions on electricity and gas, as well as support for the most affected sectors, such as agriculture and transport.