Andorra Fuel Stations See Rush After Price Cuts on Petrol and Diesel

Andorra's fuel stations are seeing increased customer traffic following the implementation of temporary price cuts on petrol and diesel, with some outlets reporting positive reactions from both locals and tourists.

The reductions—15 cents per litre on petrol and 10 cents on diesel—took effect this week after the General Council's unanimous approval on Tuesday. The measure, set to run until 30 September, seeks to regain price competitiveness against neighbouring countries amid rising costs and restore pressure on household budgets. The government is reimbursing the special hydrocarbon tax to distributors and importers, who are also absorbing part of the discount on retail prices. Officials estimate the initiative will cost €1.7 million overall, assuming sales volumes match last year's levels for the period.

Several stations noted a clear uptick in visitors coinciding with the cuts. At TotalEnergies in Sant Julià de Lòria, staff said customers welcomed the change, with some delaying refills until it started. "Any drop is appreciated, and they're very pleased," workers there reported, adding they had seen more people come specifically to fuel up. Meroil in La Massana observed slightly higher footfall, particularly from tourists including motorbikes, cars, bicycles and caravans, though regulars remained steady. Repsol in Encamp also registered more local customers, with a buoyant mood as several inquired whether the relief was summer-only or would extend further.

Not all sites saw immediate changes, however. Cepsa in Andorra la Vella reported no significant shift, maintaining typical volumes.

Current prices include diesel at €1.401 per litre and 95-octane petrol at €1.387 in Andorra la Vella. The move addresses an 18% drop in June sales compared to the previous year, driven by Spanish border shoppers opting for cheaper options like Esclat Oil in La Seu d'Urgell. Assidca, the Association of Fuel Importers and Distributors, estimated €1.25 million in lost tax revenue since Spain's tax relief began, including €750,000 in June alone, up from €300,000 in April and €200,000 in May, with shortfalls persisting into early July.

Assidca president David Porqueras praised the response despite a three-month delay that damaged Andorra's bargain-fuel image and fed inflation close to 5% year-on-year in May. Discounts will taper gradually—by five cents per litre in August and September—with no automatic extension even if fuel inflation exceeds 15%.

Global oil market volatility remains a concern, as Brent crude climbed from $72 to $78-$80 per barrel last week due to US-Iran tensions and issues in the Strait of Hormuz. Porqueras cautioned prices could hit $100 but said the cuts should help close the gap with Spain.