Andorra Cuts Diesel Prices by 15 Cents Per Litre Through September

Andorra's government and fuel importers have agreed to increase the diesel discount to 15 cents per litre for September, up from five cents in August, through a partial tax refund combined with contributions from fuel stations.

The new measure, effective from September 1, adds a 10-cent-per-litre refund on the special tax for diesel sold this month. Importers and distributors must fully pass the savings to consumers to qualify, following the same requirements as in July. Fuel stations are covering the remaining five cents, maintaining the cost-sharing ratio from prior initiatives. Operators must submit documentation to the Department of Taxes and Borders, including sales volumes, applied prices and proof of the discount's implementation.

David Porqueres, president of the Fuel Importers and Distributors Association, emphasised that the step preserves Andorra's price competitiveness with Spain. "Nothing changes, and that was the goal—to maintain the differential and competitiveness," he said. He noted that prices for both diesel and 95-octane unleaded petrol will now equilibrate around 1.60 euros per litre, keeping fills three to five cents cheaper than at nearby Spanish stations like Esclat Oil in La Seu d'Urgell.

The unleaded petrol discount drops to five cents per litre in September, from 10 cents in August, aligning with Spanish adjustments where one fuel retains its plan while the other does not.

Officials framed the action within efforts to mitigate rising energy costs' impact on residents and the economy, while matching neighbouring markets. The government recently approved regulations two weeks ago detailing requirements for claims. It plans ongoing monitoring of trends, including international factors like Middle East tensions driving a 10-cent diesel rise since August 11, and stands ready for further steps.

Porqueres cautioned that market volatility, tied to Brent oil prices, requires a wait-and-see approach. "Everyone must contribute from their costs; ideally there would be no aid, but the market is alive and we must react to our environment," he added. Despite the discounts, diesel prices simply return to early May levels after recent highs.