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Andorra Approves Extra 10-Cent Diesel Discount for September

The government modified hydrocarbon tax legislation to provide an additional 10-cent-per-litre refund on diesel, on top of the existing 5-cent cut, amid rising energy costs in the region.

Key Points

  • Parliament unanimously passes amendment boosting diesel discount to 15 cents per litre from Sept 1-30.
  • Includes 10-cent tax refund plus existing 5-cent reduction; petrol stays at 5 cents.
  • Responds to Spain's 20-cent cut and Middle East-driven price surges.
  • Finance Minister defends timing amid criticism over delayed action.

Andorra's parliament unanimously approved a legislative amendment on Thursday to boost the diesel discount to 15 cents per litre for September, despite opposition criticism over the government's timing.

The Consell General endorsed the changes to the law on temporary measures against rising hydrocarbon prices by consensus. The update provides a partial refund of 10 cents per litre from the special hydrocarbon tax on diesel, added to the existing five-cent reduction. Sales from 1 September to 30 September qualify, with operators required to pass the full benefit to consumers. Unleaded petrol keeps its five-cent discount, including a three-cent fiscal refund.

The measure follows government approval by the Council of Ministers and responds to Spain's 20-cent-per-litre diesel cut from 1 September, as well as summer price surges in diesel beyond initial forecasts, linked to Middle East tensions. Imports had returned to prior-year levels after July discounts, but diesel competitiveness against neighbouring markets weakened.

Finance Minister Ramon Lladós defended the timing, stating the proposal was ready from 15 August but delayed by parliamentary procedures and separation of powers. He rejected earlier action as impossible amid market volatility, saying it required precision to avoid wasting public funds.

Social Democrat deputy Pere Baró criticised the "lack of foresight," asking why measures were not taken in June when neighbouring countries acted months ahead and insisting the crisis predated August. Despite this, his group supported the bill.

Concòrdia leader Cerni Escalé welcomed the shared effort between government and distributors, benefiting all consumers regardless of vehicle registration. Demòcrates, Ciutadans Compromesos, and Andorra Endavant also backed the urgent procedure.

Officials aim to protect purchasing power and Andorra's economic competitiveness, with ongoing price monitoring for further steps.

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