Spain’s gas stations are gearing up for a legal showdown with the government over a controversial fuel discount policy. Here’s why ⤵️
🔍 The Price Cut Breakdown
To ease soaring energy costs linked to the pandemic and Russia-Ukraine conflict, Spain mandated a 20-cent-per-liter discount at pumps from April 1 to June 30. While consumers cheer 🎉, station owners say the policy is backfiring. The government covers 15 cents and oil firms 5 cents—but reimbursements are tied to 2021 sales data, when COVID travel bans slashed demand. Now, post-lockdown traffic has exploded, leaving stations footing huge unrecovered gaps.
🚨 Stations Hit Breaking Point
With profit margins already razor-thin (just 10 cents per liter), owners *must* front the 20 cents or risk losing customers. Many can’t afford to wait for slow repayments. Over 350 stations temporarily closed during Easter’s travel surge 🚗💨, and 3,000-4,000 face permanent shutdowns, reports the Spanish Confederation of Service Station Entrepreneurs (CEEES).
‘We’re being asked to subsidize a crisis we didn’t create,’ says Alicia Orgaz, a Madrid-area station owner. ‘The math doesn’t add up.’
As tensions rise, CEEES warns of lawsuits unless the policy is revised. Will Spain pump the brakes? 🛑
