Andorran Fuel Importers Warn Government of Losing Edge to Cheaper Spanish Stations

Andorran fuel importers met Friday with Finance Minister Ramon Lladós and Tributs Director Carles Ferreira to present data on eroding price advantages against Spanish low-cost stations, following Spain's tax reductions that have narrowed the gap amid rising global oil prices.

David Porqueres, president of the Associació d’Importadors i Distribuïdors de Carburants d’Andorra (Asidca), and vice-president Carles Visent shared figures showing some Spanish outlets, such as one in La Seu d’Urgell offering 95-octane petrol at 1.54 euros per litre, now matching or undercutting Andorran averages of around 1.547 euros. Diesel stands at 1.67 euros locally, compared to 1.79 in Catalonia. Spain's measures, including IVA cuts from 21% to 10% since March 20 and phased reductions in special hydrocarbon taxes, are taking effect gradually as distributors pass on savings, with full impact expected in 10-15 days depending on oil prices.

The meeting, described as an initial contact and informational rather than a demand for action, allowed importers to outline the situation without specific requests. Porqueres emphasized that Andorra had raised prices more moderately than neighbours during the early oil surge from Middle East tensions—Brent crude now above 110 dollars per barrel, up from a month ago when diesel was 1.249 euros per litre and 95-octane 1.29 euros. "We came to provide data and explain the sector's reality before and after March 20," he said, noting importers have exercised restraint on hikes despite fixed costs.

Government officials committed to internal review but highlighted timelines for any tax adjustments, such as to the 4.5% IGI, CO2 taxa verda, or special duties (0.407 euros per litre for unleaded, 0.247 for diesel). Changes would need parliamentary approval—potentially via urgent procedure in 48 hours—and co-princes' sanction within 8-15 days. Lladós assured evaluation of competitiveness measures, though no commitments were made.

Porqueres warned that losing the price differential risks fewer cross-border customers, lower sales, and reduced state revenue, echoing the 2022 Ukraine crisis when neighbour incentives cut Andorran volumes. "The only option is to reduce taxes," he stated, adding that such moves benefit consumers and the economy, including transport firms facing 10% fuel surcharges and 60-70 euro hikes per Barcelona run. No sales drop has materialized yet, as Andorra remains cheaper overall, but the sector anticipates Spanish low-cost prices will soon prevail fully. "The ball is in their court now," Porqueres said, urging swift decisions: "The later you act, the worse it gets."

Earlier, Economy Minister Conxita Marsol signalled an open approach, confirming receipt of Asidca's request. The sector awaits a follow-up meeting.