In the coming weeks, the government will decide on the anti-crisis measures that will be extended in 2023
The days of the discount of 20 cents per liter of fuel for all citizens seem numbered. Third Vice President and Minister for Ecological Transition, Teresa Ribera, has again set the pace for the executive by making it clear that this bonus should no longer be generalized if extended beyond December 31, and calls for it to be concentrated on the sectors and households that need it most.
“The 20 cents a liter subsidy was an emergency decision this summer, with very high fuel prices, requiring a quick response that it was a general measure and easy to apply, but it is increasingly important to focus the effort on those who need it the most, either for professional reasons or for family income,” he said during an interview with RNE.
The executive has spent weeks analyzing the measures of the anti-crisis plan that will be extended in 2023. And in recent days, it has reinforced discussion that some – like this bonus – should be revised to focus it on specific groups and more vulnerable sectors.
Ribera himself recently admitted that the highest incomes are those who have benefited most from a measure that entails much higher tax costs than initially expected for the state treasury. In concrete terms, the estimated monthly costs have risen from about 470 million euros per month to the 800 million that it eventually entailed during the summer months, when fuel consumption increased sharply, partly due to holidays.
With these figures, since its introduction in April, the bill for the measure could exceed EUR 6,200 million at the end of the year, almost EUR 2,000 million more than originally expected. And all this in a context where fuel prices are starting to moderate compared to the highs of last July, when both petrol and diesel exceeded €2.10 per litre.
According to the latest oil bulletin from the European Commission that appeared last Thursday, a liter of petrol cost an average of 1,771 euros and diesel 1,963 euros that week. Petrol thus remains below the level of before the entry into force of the aid of 20 cents per liter (1,818 euros per litre) approved at the end of March, although in the case of diesel it is still more expensive (1,837 euros).
Everything indicates that the government will shorten the deadlines to announce which measures of the anti-crisis plan will be permanently maintained in 2023 and which will be lifted or changed from their original state. And on transportation, it’s clear that the commitment to free subscriptions that was included in the budget project will be how the government will deploy in the face of general support to pay for fuel.
As Ribera recalled, these free plans are more “inclusive” than the fuel bonus. “We know that before the summer it was impossible to be precise and differentiate between families, but at this point we have learned how to focus fiscal and budgetary efforts where it is most efficient and fair,” he stressed.
The third vice president has insisted that fossil fuels should not be subsidized nor should favorable tax treatment be introduced for them, as this is a fundamental principle for promoting the transformation of the energy system.
However, he is aware that this cannot happen “overnight and with skyrocketing prices” and that it must be affordable for families. “A just transition is also needed for consumers,” he explains.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
