Spain’s Transport Sector Braces for Fuel Priceโค Hike due to New Emissions โฃRegulations
Spain’s transport industry โฃis anticipating a significant increase in fuel costs – potentially up to 45 centsโ per liter – as an inevitable result of new regulationsโค requiring the purchase of emissions rights, set to take effect in 2027. The changes, impactingโ both professionalโค and private fuel use, โขare drawing concern from transport associations who warn of a ripple effect throughout the Spanish economy.
Currently, approximately 95% of inland freight transport in Spain relies on road transport. The upcoming regulations will essentially โfunction similarly to aโข fuel taxโ increase, requiring businesses and individuals to acquire rights to emit pollutants. however, unlike existing fuel taxes, professionalโข transport โoperators will likely not receive the current tax return discount on professionalโ diesel, a key โform of compensation they โcurrently rely โขon.
Transport organizations estimate the new regime will add between 25 and 45 cents per liter to the โขcost of fuel, representing a potential price increase of 15% to 30% based on current prices. While some distributors suggest โขa more moderate impact of 15 to 25 cents per โคliter, the consensus is that the costโค will be significant.
The increased expense will effect a โขbroad range ofโค users, including private drivers,โ farmers, passenger transport, and crucially, theโ freight transport sector – which is considered a major contributor to pollutingโ emissions. Carmelo Gonzรกlez of CETM (Confederaciรณn Espaรฑola โฃde Transportistas de Mercancรญas) stated that the highly competitiveโ transport sector,โ operating on narrow margins, will likely pass these increased costs onto consumers through โhigher โขrates.
Experts โฃpredict this price increase will extend โฃbeyond the transport sector, impacting industry and consumers across Spain. Carlos โGiner, global Transport Director โof the Sesรฉ Group, a โขmajor Spanish logistics company, explained that the โฃnew regulations will increase costs related to fossil fuels, ultimately leading to price increasesโ throughout the economy.
The government’s stated goalโค is to incentivize companies to accelerate decarbonization efforts and rationalize fuel consumption by making polluting activities more expensive. Pedro Gonzรกlez-Gaggero ofโฃ EY notes the dualโ purpose of the initiative: toโ encourage investment in lower-emission processes and to reduce overall consumption.
While acknowledging the need forโ sustainability, โฃindustryโ representatives express frustrationโ with the perceived lack of robust defense of Spanish interests during the negotiation of these regulations.โ They are urging the government to negotiate aid or compensation measures โฃto mitigate the financial โขimpact. Carlos Giner of the Sesรฉ Group emphasized the need for institutional support and versatility in choosing the most appropriate decarbonization technologies.