The difference in fuel prices between Portugal and Spain has once again gained a dimension that is difficult to ignore. In recent weeks, the combination of the continuous rise in prices in the national territory and the significant reduction in the tax burden in the neighboring country has triggered a real rush on Spanish posts, especially in border areas. The scenario repeats itself along the lane: lines of cars with Portuguese registration plates, tanks filling up and bills that, in the end, are clearly lighter.
Savings that stand out
In the Spanish town of Rosal de la Frontera, in Huelva, a few meters from the Portuguese border, the image became routine. The majority of customers who stop to refuel come from Portugal.
According to , which cites Huelva24, a Spanish regional information website specializing in current affairs in the province of Huelva, seven to eight out of ten customers are Portuguese, a proportion that has become even more evident in recent weeks.
The price difference explains the phenomenon. According to reports collected on site, gasoline and diesel can cost 40 to 50 cents less per liter in Spain. In a car with an average tank of 55 liters, the final savings range between 16 and 27 euros, an amount that easily compensates for the trip, even for those who live a few dozen kilometers from the border.
Not infrequently, motorists take advantage of their trip to also purchase gas bottles, another product whose final price is lower on the Spanish side.
Lower VAT accelerates demand
This movement intensified after the Spanish Government decided to reduce the Value Added Tax applied to fuels, electricity and natural gas. The rate went from 21% to 10%, the minimum allowed by European legislation, as part of a package of measures aimed at mitigating the impact of the current energy crisis associated with the conflict in the Middle East.
The decision was part of a Comprehensive Response Plan approved by the extraordinary Council of Ministers, which brings together around 80 measures. In addition to the reduction in VAT, the plan foresees the reduction or temporary suspension of other taxes linked to energy production and consumption, as well as specific support for more exposed sectors, such as transport, agriculture and fishing.
Discounts on professional diesel, help with the purchase of fertilizers and increased support for electricity for families considered vulnerable are also planned.
In the gas sector, a maximum price has also been established for butane and propane, while in electricity the global tax burden is expected to fall by around 60%. The financial effort estimated by the Spanish executive reaches five billion euros, a value that Prime Minister Pedro Sánchez directly associated with the economic cost of the current international situation.
The price difference between the two countries is not new, but it has rarely been so significant over such a long period.
In recent days, there have been some occasional drops in the average price of diesel in Portugal, although not all stations have immediately implemented these reductions, which has contributed to maintaining the attraction of Spanish pumps.
As long as the pressure remains on the Portuguese side and the tax reduction is in force in Spain, everything indicates that crossing the border will continue to be part of the routine of many drivers.
This price difference has become a determining factor in managing the family budget of those who live close to the dividing line, reinforcing an old habit that has now taken on an almost everyday dimension.
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