Andorra Approves Fuel Price Cuts to Counter Rising Costs and Spain's Diesel Discount

The Andorran government has approved regulations to implement temporary fuel price cuts aimed at easing the impact of rising hydrocarbon costs on households and businesses, while pledging to monitor Spain's renewed diesel discount and consider further steps to protect local competitiveness.

In an extraordinary Council of Ministers meeting on Friday, the executive endorsed the implementing regulation for the Law on Temporary Measures to Address Hydrocarbon Price Increases. The move aligns with the law's entry into force and sets out procedures for importers and distributors to claim partial refunds on the special hydrocarbon tax. Operators must submit applications to the Department of Taxes and Borders, providing evidence of fuel volumes sold, applied sale prices, and proof that the tax relief reached end consumers. The department may request additional details to verify compliance.

The relief applies from 15 July to 30 September 2026. Petrol prices will drop by 15 cents per litre in July, 10 cents in August, and 5 cents in September. Locomotive diesel receives 10 cents off in July and 5 cents in August.

This comes amid Spain's announcement of a 20-cent-per-litre diesel reduction starting 1 September, which could narrow the price gap between the two countries. On Thursday afternoon, Finance Minister Ramon Lladós and Department of Taxes and Borders director Carles Ferreira met with fuel importers to assess the Spanish policy's potential effects on Andorra's market and gather sector feedback.

The government has committed to closely tracking fuel price trends and neighbouring countries' actions. Lladós reiterated to importers the executive's dedication to maintaining Andorra's diesel price edge, without ruling out additional measures if needed. Officials will continue evaluating the situation to safeguard commercial competitiveness.