Andorra Matches Spain's Petrol Diesel Tax Cuts to Hold Border Price Edge

Spain's government has extended tax reductions on petrol and diesel through December, prompting Andorran officials and fuel importers to finalise matching cuts ahead of implementation tomorrow.

The measures, approved by Spain's Council of Ministers on Tuesday, reduce taxes by 20 cents per litre in October, 13 cents in November, and 6 cents in December for both petrol and diesel. A clause allows adjustments if oil prices rise further. Andorran authorities launched talks with the sector yesterday upon learning of the Spanish decision, aiming to approve equivalent discounts to preserve the price advantage across the Runer river border.

David Porqueres, president of the Fuel Importers Association, confirmed the discussions to Diari d'Andorra. For October, Andorra must at minimum maintain a 15-cent cut on diesel—matching Spain's—and apply a 15-cent reduction on unleaded petrol atop the 5 cents still active from September. Similar provisions are needed for November and December. Currently, Andorran stations hold a roughly five-cent edge over Esclat Oil in La Seu d'Urgell, Spain's nearest and one of Lleida province's cheapest outlets. Matching the cuts would sustain this margin.

The push responds to global oil pressures, with Brent crude above $100 per barrel after a recent weekly rise. Andorran pump prices climbed two cents last week, now ranging from €1.71 to €1.74 per litre for both fuels.

Meanwhile, border stations report gains from a 60-cent differential with France. Jesús Llanas of Gasopas station noted a 10% sales increase over prior Septembers, with 1,500 daily customers despite the usual post-August dip. Arap-Envalira confirmed higher French visitor volumes this month, a trend Porqueres links to widespread fuel cost concerns.

Andorran government sources indicate legal changes are in preparation for swift enactment, building on July arrangements—recently updated for diesel with shared costs between stations and the executive. Without action, Spanish prices would undercut Andorra's from Thursday.

Spain's move addresses inflation, with preliminary September CPI at 4.9%, up 0.9 points from August—the highest in three and a half years—driven mainly by hydrocarbons despite softer package holiday costs.