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

Andorran petrol stations implemented a 15-cent per litre discount on petrol yesterday, with diesel prices holding steady at €1.74 per litre, leaving petrol below €1.60 for the first time since late August. The move, approved by the government on Wednesday, mirrors Spain's tax cuts and ensures border pumps maintain their price advantage through December amid volatile oil markets.

Drivers expressed a mix of surprise and approval at the pumps. Many learned of the reduction only upon arriving to refuel. "It's a good action by the government knowing there's a surplus. Now, whether it can be sustained is another matter," said Eduard Tomàs, filling up before a trip. Jordi Puig, who stopped due to low fuel, added that he was unaware of the measure but welcomed any relief, noting its impact on full tanks. Manuel Ferreira called for deeper cuts, citing daily worker expenses amid recent sharp rises. A Spanish visitor took advantage of the lower prices compared to home.

The gap between petrol and diesel returned to 15 cents, matching late August levels before diesel's prior 20-cent reduction. Both fuels will see discounts taper by 7 cents monthly—petrol to 13 cents in November and 6 cents in December, diesel to 8 cents in November—keeping parity. Finance Minister Ramon Lladós described the plan as calibrated to fiscal room and contributions from importers and operators, not a direct copy of Spain's. He credited the public-private partnership with shielding residents and firms from Middle East tensions and high Brent crude.

This extends September's diesel relief, preserving a roughly five-cent edge over Spanish stations like those in La Seu d'Urgell. Local outlets report robust demand, with Gasopas sales up 10% last month and French cross-border traffic strong at sites like Arap-Envalira, holding a 60-cent lead over France. Fuel Importers Association head David Porqueres had urged significant October action, now addressed.

A related bill to adjust hydrocarbon taxes for retroactive refunds awaits General Council approval. The government plans ongoing monitoring.

Separately, September inflation eased to 4.5%, down three-tenths from August, driven by clothing and footwear prices alongside transport costs. Monthly prices rose 1%, below last year's 1.3%. Andorra now trails Spain's 4.9% but tops France's 3%; final figures emerge October 12.