The end of the Station Wallet Drain! When and how the historic "cut" in fuel prices will affect you

**The military escalation in Iran has turned refueling into a real nightmare for Spanish wallets. Faced with panic at gas stations, the government has been forced to throw a lifeline

The price of gasoline and diesel in Spain has crossed the red line of financial pain, lapping at a frightening two euros per liter at some stations! But this agony finally has an expiration date. With extreme urgency, the government has approved a package of measures to immediately stem the brutal effects of the international energy crisis. The star of the show: an unprecedented fiscal blow that lowers VAT on fuel from 21% to 10%.

When will we stop trembling when looking at the distributor?

The countdown has already begun. You won't have to wait painful weeks: the discount will go into effect almost immediately after it is published in the State Official Gazette (BOE). If the decree-law approved at the Extraordinary Council of Ministers sees the light of day in this evening's edition of the BOE, you'll be able to fill up your tank as early as this weekend without feeling like you're being robbed in broad daylight! But gas stations are now facing a race against time, pouring out their seventh sweat to adjust their IT and accounting systems in just a few hours. We've already survived technical chaos at a discount of 20 cents during the war in Ukraine, and the sector is keeping its fingers crossed that the this time the computers did not die.

Even €20 savings per tank!

The war in Iran has triggered a price tsunami that sends shivers down our spines: in March alone, diesel shot up 27.4% and gasoline 14.9%, with diesel outpacing gasoline in this crazy escalation. Until now, of every €50 you paid, €22 escaped in taxes.

Thanks to this megadecree, experts are predicting blissful relief: about 18 cents less per liter for diesel and 17 cents for 95 gasoline. According to the Prime Minister himself, if you add in the adjustments to the Hydrocarbon Tax, the total reduction could reach a staggering 30 cents per liter. For an average tank, this means you'll stop handing over about 20 euros to the tax with every fill-up.

The state is giving up some of its gigantic revenues (the tax office raked in an additional 20 million in the first week of March alone thanks to fuel inflation) to give respite to suffocating citizens, transporters and farmers. In addition, oil giants such as Repsol are joining the price battle, offering discounts of up to 40 cents to their most loyal customers. The price war has begun, and your wallet will be its biggest winner!