The Government has decided to extend until the end of the year the bonus of 20 cents per liter for diesel used in agriculture and fishing, with the aim of cushioning the strong rise in costs that the primary sector bears due to the war in Iran. This package represents a total allocation of 209 million euros, of which 159 million are allocated to agricultural diesel and 50 million to the fuel of the fishing fleet.
In the case of agriculture, the extension of the aid now has a specific budget of 52 million euros, which is added to the 107 million previously approved to alleviate the increase in agricultural diesel prices.
For fishing, the compensatory aid aimed at shipowner companies is maintained in order to absorb the increase in fuel costs and ensure that the vessels can continue fishing normally. The planned amount is an additional 15 million euros, which is added to the 35 million already authorized to address the extra cost of fishing diesel.
With these measures, the total volume of specific support from the Executive for the agricultural and fishing sectors included in the Comprehensive Response Plan to the Middle East Crisis already amounts to 1.174 billion euros.
Support for fertilizers and new actions in Agriculture
In parallel to the extension of the fuel bonuses approved by the Council of Ministers, the Ministry headed by Luis Planas is advancing in the completion of extraordinary aid for the acquisition of fertilizers, endowed with 665 million euros.
After the first payment at the beginning of September, amounting to 494.5 million euros to 249,376 farmers, the Spanish Agricultural Guarantee Fund (FEGA) plans to publish next week the second resolution with the beneficiaries of this support line.
Commission to the CNMC to monitor the food chain
At the same time, the first vice president and minister of Economy, Trade and Business, Carlos Cuerpo, has explained that the decree incorporates two new requests to the National Commission of Markets and Competition (CNMC).
The CNMC must carry out a detailed monitoring of the evolution of food prices by preparing and disseminating a study on the functioning and level of competition throughout the value chain, as well as its impact on final prices.
Body has emphasized that the Executive is "following in a very detailed manner from the beginning" the evolution of food prices in the shopping basket, because farmers "are being affected by the increase in energy costs."
"We are going to ask the CNMC to carry out a specific analysis of the situation of the entire chain, especially of those foods that are contributing the most to the increase in the shopping basket. We must remain very vigilant in this aspect," he reiterated, recalling that, as already happened with the war in Ukraine, the "peak of energy transfer to food occurs around 12 months."
Tax extension and limits on gas and electricity
The new decree also extends until December 31 the tax reductions applied to gasoline and diesel, as well as the caps on the regulated gas tariff and the price of the butane cylinder, given that most of the royal decree-law in force was set to expire at the end of September.
"It is an effort that in its entirety would represent more than 12 billion euros to public coffers, an ambitious protection plan for households and businesses, while we continue with that push to guarantee energy sovereignty and the electrification of our economy," defended the first vice president and minister of Economy, Trade and Business, Carlos Cuerpo, at the press conference following the Council of Ministers.
In recent weeks, the Executive has maintained contacts with social agents and the most affected sectors to analyze the impact of a price escalation that does not relent. According to data released this Tuesday by the National Institute of Statistics (INE), general inflation stood at 4.9% year-on-year in September, the highest level since February 2023, driven by the increase in fuel costs.
Fuel discount and safeguard clauses
Within this package, the Government introduces an additional relief in the Hydrocarbons Tax: 20 cents per liter in October for gasoline and diesel, 13 cents in November, and 6 cents in December, with an automatic safeguard clause if the price of crude remains high.
"If prices rise above 15%, we would return to the 20 cents reduction in November or December," Cuerpo detailed.
The economic responsible has emphasized that the tax modifications on fuels approved so far have been passed on to the final price paid by the consumer, as confirmed by the National Commission of Markets and Competition (CNMC).
In addition, the safeguard clause for the reduction of VAT and the special tax on electricity is maintained, which would be reactivated, as already contemplated by previous decrees, if the price of electricity or gas escalated by more than 15%.
Regarding the most exposed sectors, aid for agriculture and fishing is extended, as well as for professional road transport. As a novelty, a new support line for freight rail is enabled, with 15,000 euros per diesel locomotive, a measure demanded by the sector itself.