With petrol records breaking records, sellers are demanding a tax cut

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Next Saturday, the government will approve a limitation of VAT on electricity to 5% in the extraordinary council of ministers. However, this has caused other energy sectors to position themselves for similar treatment.

This is the case with the Spanish Confederation of Gas Station Entrepreneurs (Ceees), the employers’ association that represents the interests of gas stations in Spain. “In today’s era, with runaway inflation and a worrying economic outlook, any measure that translates into higher disposable income for consumers is welcome,” they said in a statement.

However, they emphasize that “they cannot understand the reasons that prevent the government from taking a similar measure for fuels.” That is why they believe that the government should fight within the Union for a reduction in VAT on fuels, in a similar way as it did for the Iberian exception on the electricity market in the European Council.

This move is something Ceees has been asking for for a while – last time, in February, before the Russian incursion into Ukraine and prices skyrocketed -; However, the only thing that the Spanish government has implemented is the 20 cents per liter bonus, included in Royal Legislative Decree 6/2022.

For the association, this mechanism is “although well-intentioned, poorly designed and poorly executed” and has endangered service stations, especially SMEs and the self-employed. No one, they say, has recovered the subsidized amount.

The reduction in VAT for electricity companies is one of the measures the management is considering to alleviate the growing inflation. Another of the plans is to extend the 20 cents per liter measure, which is not expected to take effect until June.

This decision corresponds to a time when petrol and diesel reached record highs in their average price: 1,941 euros for petrol and 1,876 euros for diesel. Without taking into account the public bonus, these prices would exceed the two euro mark, according to figures from the EU Oil Bulletin.

These prices assume that filling a 55 liter tank with petrol costs 107 euros, while that is 103 euros for diesel. These prices are respectively 26 and 29 euros higher than a year ago.

For the president of the Moure group, Manuel Montero, “we have to see what is behind the increase in gasoline prices. If the Brent barrel has increased by 5%, it cannot be that we, distributors, see an increase of 30% in refining. Their costs may have gone up as well, but it’s hard to explain that magnitude.”

Source: La Verdad

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