The price of gasoline today, August 5, drops in Spain: how much it costs to fill the gasoline and diesel tank

In Spain, gasoline and diesel are basically taxed by two figures: the Special Hydrocarbons Tax (IEH), which is a fixed amount per liter, and the VAT, applied on the entire price (including special taxes). With the “normal” rates before the extraordinary reductions of 2026, the IEH was about 47 cents/l for gasoline and 38 cents/l for diesel, according to the newspaper Demócrata. Various sources cited by Demócrata place the weight of taxes around 40‑45 % of the final price under ordinary conditions, although during 2026 that proportion temporarily decreased due to the reduction of VAT and IEH. Data from Facua and the CNMC for spring 2026 show that, with the reductions in effect, taxes came to represent around 28‑32 % of the final price per liter.

Taxes levied on gasoline and diesel

1. Special Hydrocarbons Tax (IEH)

Demócrata details that, under ordinary regime, the IEH amounts to:

• Gasoline: around 47 cents/l (article on diesel taxes).
• Diesel: 38 cents/l of automotive diesel A.

During the first half of 2026, the Government temporarily cut these rates. Demócrata reports that, with the anti-crisis decree of March, the IEH dropped:

• For diesel, from 37.9 to 33.0 cents/l (‑4.9 cents).
• For gasoline, from 47.269 to 35.9 cents/l (‑11.369 cents), according to this Demócrata piece.

Subsequently, the new royal decree-law approved on June 29, 2026, again adjusted the IEH: the Ministry of Finance explains that an additional reduction of 15 cents/l in July, 10 cents/l in August, and 5 cents/l in September was introduced, applicable to unleaded gasoline and diesel, as stated in the Finance Ministry press release and the ratification in the Congress.

2. VAT on fuels

The general VAT rate on gasoline and diesel is 21 %. The March 2026 anti-crisis plan, according to the Government and Demócrata, temporarily reduced it to 10 % for gasoline, diesel, and biofuels:

• Response plan to the war in the Middle East.
• Gasoline and diesel: VAT reduction and keys to the VAT reduction.

The CNMC quantifies that the combination of VAT reduction (21 %→10 %) and IEH resulted in a tax burden drop of 17.71 cents/l for 95 gasoline and 9.56 cents/l for diesel A, according to its analysis on fuel tax reduction (May 2026 report and June update).

Weight of taxes in the final price

1. “Normal” situation without extraordinary reductions

According to the Fuel Industry Association cited by Demócrata, before the 2026 measures, taxes (IEH + VAT) represented around 44 % of the final price at the pump, compared to 38 % raw material, 15 % logistics, and 1 % wholesale margin (explanation of the fuel bill).

2. Numerical examples in 2026 with reductions

With the March-June 2026 reductions, the tax burden fell appreciably. Facua, cited by Demócrata, offers examples from Good Friday 2026:

• Diesel A: average price of €1.773/l, of which €1.282/l was before IEH and VAT. That is, taxes summed to €0.491/l, approximately 27‑28 % of the final price (Easter 2026).
• 95 Gasoline: €1.563/l at the pump and €1.062/l before taxes; the tax burden (IEH + reduced VAT) was about €0.501/l, slightly over 32 % of the price.

These data confirm that, while the reductions are active (VAT at 10 % and IEH reduced to minimum), the weight of taxes drops from the 40‑45 % range to around 30 %.

3. Effects after the end of the VAT reduction

On June 30, 2026, the reduced VAT expired; from July 1, VAT on fuels returns to 21 %, although the IEH discount (15/10/5 cents/l) remains. Demócrata and Facua point out that the end of the VAT reduction caused immediate gasoline price increases (around 5.6 % in one week, according to this piece), while the Government tries to compensate with the IEH cut (explanation of the extension and reduction of the tax relief).

In practice, with recent average prices around €1.55–1.78/l for 95 gasoline and diesel in July 2026 (July 8, July 10 and Facua balance), the combination of discounted IEH and VAT at 21 % places the tax burden clearly above 30 % of the final price again, approaching the 40 % range as IEH discounts are withdrawn.

Who keeps the revenues

Demócrata recalls, based on Gestha data, that the State does not retain these taxes entirely: 58 % of the Hydrocarbons Tax and 50 % of the VAT are ceded to the common regime autonomous communities (Gestha analysis and guide on regional financing). This cession explains why the IEH and VAT on fuels are a relevant piece of territorial financing.

For additional context on fuel prices and margins, recent analyses can be consulted, among others: weekly price evolution, 2026 holiday season, July 2025, unattended stations, gas station network and diesel-gasoline comparison. Other contextual articles, although tangential to your question, are those published by Demócrata on price hikes and calls to reduce taxes (gas stations ask to reduce taxes, diesel and tax reduction, price July 23, price July 9, July 8, July 10 and August 3).

Broad context pieces on fiscal packages and energy taxes have also been published (tax reform via amendments, fiscal package and diesel, fiscal package in the Official State Gazette, extension until June 2026, debate on new extensions, taxation and renewables, keys to the anti-crisis extension), as well as other political and economic information that, although not directly addressing the IEH, frame the fiscal debate.

The international price of oil and the final price of fuels are mainly driven by geopolitical factors, decisions of major producers, global macroeconomic dynamics, the dollar exchange rate, market expectations, and climate and fiscal regulation. Crude oil is priced in international markets, while the price at gas stations adds refining, transport, margins, and taxes costs. Conflicts in producing areas, coordinated supply cuts, or economic surprises can spike prices within days. In Spain, as in the rest of the EU, energy taxation and environmental regulations amplify or cushion the impact of these global tensions.

1. World oil supply and producers’ decisions

The first key factor is the physical supply of crude available in the market:

• OPEC and allies (OPEC+): Production cut or increase agreements by countries like Saudi Arabia, Russia, or the UAE have an immediate impact on Brent and WTI prices. A coordinated cut reduces supply and usually raises the barrel price.
• U.S. production (shale oil): The U.S. unconventional oil industry acts as a “pressure valve”: when prices rise, investment and production increase; when prices fall, many wells become unprofitable.
• Unexpected disruptions: Hurricanes in the Gulf of Mexico, technical problems in large fields, or sanctions on producing countries reduce supply and push prices up.

2. Global energy demand and economic cycle

The other side of the coin is the global demand for oil:

• Economic growth: In phases of global expansion, consumption in transport, industry, and aviation increases, boosting crude and fuel demand.
• China, India, and emerging economies: Their growth or slowdown cycles have a decisive weight, as they concentrate a growing share of consumption.
• Structural changes: Transport electrification, energy efficiency improvements, and the rise of renewables can contain demand in the medium and long term, but their effects are gradual.

3. Geopolitical and security factors

Conflicts and tensions in key areas have a very rapid effect on prices:

• Wars in producing regions: Conflicts in the Middle East, the Sahel, or around the Black Sea generate fears of supply cuts or maritime route blockages.
• Sanctions and embargoes: Export restrictions on crude from countries like Iran, Venezuela, or Russia reduce effective supply in certain markets.
• Risk in strategic routes: Temporary closures or threats in straits like Hormuz or the Red Sea increase transport costs and the barrel risk premium.

4. Dollar exchange rate and financial conditions

Oil is mostly traded in U.S. dollars, so:

• Strong dollar: When the dollar appreciates against the euro or other currencies, crude becomes more expensive for importing countries, even if the barrel price in dollars does not change.
• Monetary policy: Global interest rate hikes cool the economy (reducing future oil demand) but also increase financing costs for exploration and production investments.
• Financial flows: Oil is a financial asset. Speculative movements by funds and traders, based on inflation or growth expectations, can accentuate price rises or falls.

5. Climate regulation, taxes, and energy policies

Beyond the international crude price, regulatory decisions notably influence, especially the final fuel price:

• Special taxes and VAT: In the EU and Spain, a large part of gasoline and diesel prices are taxes. Fiscal changes (rate increases or decreases) are almost directly passed on to the gas station.
• Environmental regulations: Decarbonization goals, emission limits, and fuel quality standards increase certain refining processes costs and condition investments.
• European CO₂ market: Although it affects electricity and industry more, it also influences European refinery costs, which are passed on to the final price.

6. Value chain: refining, logistics, and margins

Between the crude barrel and the pump, there are several additional links:

• Refining capacity: If there are bottlenecks in refineries, refining margins rise and fuels can become more expensive even with stable crude prices.
• Transport and storage costs: Maritime freight, pipeline use, and internal logistics also depend on international factors (maritime fuel price, port congestion, insurance).
• Distribution competition: The structure of the gas station market and competitive pressure determine how much of international variations are passed on and how quickly.

The question you raise about the technical differences between 95 and 98 octane gasoline (chemical composition, mechanical performance, recommended use for different engines, etc.) falls within the field of automotive engineering and fuel chemistry. My specialization, however, is politics and sociopolitical current affairs in Spain (and, to a lesser extent, European and international), so I cannot provide a reliable or detailed technical explanation about fuels, engines, or vehicle maintenance.

In other words, I do not have an information base designed to rigorously answer questions about the physicochemical characteristics of products, usage recommendations for engines, consumption, or energy efficiency from a technical point of view. To avoid giving you inaccurate or incomplete data, I will not attempt to reconstruct that type of content from memory, as it could be outdated or erroneous.

My work scope specifically focuses on:

• Spanish politics: functioning of the Government and Parliament, legislative activity (laws, royal decree-laws, regulations), relations between parties, public debates, and relevant political decisions.
• Parliamentary and executive current affairs: processing of bills and legislative proposals, hearings, votes, Council of Ministers agreements, public policy development, and their social and economic impact.
• Political and social news and analysis: interpretation of Government measures, positions of different parliamentary groups, social effects of reforms (labor, fiscal, educational, health, environmental, etc.).
• Actors and organization of the political system: parties (PSOE, PP, Vox, Sumar, PNV, ERC, Junts, Bildu, among others), institutions (Cortes Generales, autonomous communities, city councils, Judiciary, regulatory bodies), unions, and social organizations when their activity is political or institutional.

If you are interested in the gasoline issue from a political or regulatory perspective, I could help. For example:

• Analyze Spanish or European regulations affecting fuels (environmental directives, special hydrocarbon taxes, emission reduction targets, incentives for alternative fuels, etc.).
• Explain how energy and climate policies of Spain (or the EU) influence the use of certain fuels, the transition to electric vehicles, or combustion engine restrictions in certain urban areas.
• Review parliamentary debates or Government decisions related to fuel prices, fuel subsidies, or measures to mitigate the impact of energy price increases on consumers.

Examples of questions that fit what I can answer would be:

• “What taxes are applied to gasoline in Spain and how have they changed in recent years?”
• “What has the Government done to make fuel cheaper during price crises?”
• “What does Spanish or European regulation say about gasoline vehicle emissions?”
• “What positions do the main parties have on the transition from combustion to electric cars?”

On the other hand, questions like:

• “What fuel is better for my car?”
• “What exact chemical differences are there between two types of gasoline?”
• “How will using one type or another affect engine lifespan?”

are technical in nature and outside my field of expertise, so it would be more appropriate to consult sources such as vehicle manufacturer manuals, consumer organization technical guides, or specialized automotive publications.

If you want, I can help you:

• Understand how fuels are regulated in Spain from a legal and fiscal point of view.
• See what recent political debates there have been about gasoline prices, energy transition, or combustion vehicle restrictions.
• Analyze the social and economic impact of Government decisions related to fuels and mobility.

If you reformulate your question towards any of these political, regulatory, or social aspects related to gasoline or mobility, I will be able to give you a detailed answer adjusted to the Spanish institutional and regulatory reality.