He diesel market in Spain faces an unexpected turning point that will directly affect drivers and consumers of this type of fuel. The recent decision of Governmentwith the support of parties like the PNV and Junts, plans a tax reform to increase the tax on diesel commonly known as “cheap diesel”. This measure, which must still go through the Congressfollows from European Union directives, which require tax adjustments as part of the Next Generation aid fundThus It is estimated that it will come into force from April 2025. Drivers will need to prepare for a significant increase in fuel costs, marking the end of an era when diesel was the cheapest option.
In recent years, diesel has maintained a price advantage over gasoline. But this difference is about to disappear. With the expected increase between 9 and 11 cents per literfilling up a tank of diesel will cost between five and six euros more. This reform is not an attempt to improve the quality of fuel or increase its value, but rather a tax adjustment that will equate the price of diesel with that of gasoline, mainly affecting ordinary users. Diesel intended for heavy transport and other specific sectors will be largely exempt from this increase, which has generated divided opinions between the different sectors which depend on this fuel. Consumers Individuals, and less professionals, will be the main ones affected. due to this increase in the price of diesel. On average, drivers of diesel vehicles saved around 10% on fuel compared to gasoline vehicles. However, with the new adjustment, this difference will be diluted, affecting not only those who own private vehicles, but also small businesses and other self-employed workers who rely on diesel as the basis of their operations.
Bad news for diesel: price recovery confirmed
The proposed tax increase means that the price of diesel will increase to levels never before seen in the country, with a tax burden that will increase from 0.379 euros to 0.47269 euros per liter. For consumers, this translates into additional expenses which, In the case of filling a tank of around 60 liters, this could be six euros more than usual. The measure will mainly affect “low-cost” gas stations, which until now maintained a more competitive price, but it will also influence the general cost of fuel in Spain.
Currently, the average price of diesel in the country is around 1.40 euros per liter.while gasoline costs around 1.50 euros. With the new increase, diesel and gasoline should become equal or even that the first surpasses the second, generating great uncertainty among users of diesel vehicles who depended on this cheaper fuel. Although diesel has always been a cheaper option due to its professional use in sectors such as agriculture and transport, today its use is much more common among individuals, who will be the main affected.
How will this affect small businesses and self-employed people?
Although the reform focuses primarily on the individual consumer, the impact will also be felt on small businesses and self-employed people who rely on diesel for their daily activities. Courier companies, repair services and urban transport will see their operating costs increase considerably, even if professional diesel will be largely spared from this increase. For these sectors, especially those with low profit margins, the increase in the price of diesel could result in higher costs, lower profitability and even a reduction in prices to be competitive in the market.
Nevertheless, The Government guaranteed that diesel for professional use, such as that intended for transporters and farmers, would maintain tax exemptions. This exclusion aims to protect the competitiveness of these sectors and avoid a greater economic impact on the industry. However, self-employed people who use diesel vehicles for light commercial activities, such as vans or delivery vans will not be able to access these exemptions. This has caused unease among the professionals concerned, who consider that the measure does not take into account the needs of those who depend on this fuel for their daily activity.
Long-term consequences for diesel drivers
With the trend towards electrification and the phasing out of combustion vehicles in Europe, diesel faces an increasingly uncompetitive cost landscape. In the coming years, and particularly after this measure comes into force in 2025, diesel drivers could start to reconsider the viability of their vehicles versus hybrid or electric options. Diesel, which until recently remained an economical alternative, will become an option comparable in price to gasoline, which will likely accelerate the transition to less polluting fuels.
Rising diesel prices not only affect the wallet, but also the future planning of many drivers, who may opt to transition to more sustainable technologies. THE European Union requirements for emissions reduction and sustainability also motivated this reform.seeking to reduce the country’s dependence on fossil fuels.
