Andorra Fuel Importers Urge Government Talks on Spain Price Threat Amid Oil Surge

Andorra's fuel importers have urged the government to convene a meeting to discuss eroding price competitiveness against Spain, even as one key station reports rising customer traffic amid global oil price surges from the Iran conflict.

The Associació d’Importadors de Carburants i Combustibles d’Andorra (Assidca) has formally requested talks, submitting calculations on price trends in both territories. Spain's VAT reduction on fuels from 21% to 10%—now visible at pumps—and an impending cut in the special tax to the EU minimum could trim prices by about 30 cents per litre, importers warn. Without parallel measures in Andorra, where taxes claim 54 cents per litre on 95-octane petrol, 58 cents on 98-octane and 40 cents on diesel, the traditional gap will shrink, endangering a sector that draws tourists.

Assidca president David Porqueres described the importers' measured response to crude oil volatility, with Andorran stations raising petrol by 25 cents per litre and diesel by 42 cents since the crisis—below increases of 40 and 60 cents at some Spanish low-cost sites, including a La Seu d’Urgell outlet. "We've handled it responsibly," he said, pushing for a data-driven discussion ahead of any meeting. Lower taxes, he noted, would mainly aid consumers, particularly visitors fuelling much of the revenue. The government has yet to reply.

Recent data shows mixed impacts. At Pas de la Casa's Gasopas station, traffic has climbed 5-10% year-on-year, averaging higher inflows of French vehicles where prices have spiked more sharply—to €1.985 per litre of 95-octane versus €1.554 locally, up from €1.375 on 10 March. Gasopas president Jesús Llanas attributed this to weather and daily fluctuations, plus easier access after RN20's reopening. The station's pricing reflects a weighted average of stocked fuel bought before the conflict, delaying full pass-through of rises.

Broader trends confirm pressures: average diesel hit €1.670 per litre yesterday from €1.249 on 28 February, with 95-octane at €1.547 and 98-octane at €1.603, both up 25 cents. Spain's measures have already cut Catalan diesel to €1.79 (12 cents above Andorra), 95-octane to €1.599 (5 cents above) and 98-octane to €1.725 (12 cents above).

Transport firms, facing hikes like €60-70 extra for Barcelona runs, are preparing their own plea for aid extensions. Current subsidies, boosted in 2022 to €0.24 per litre for some vehicles up to 8,000 litres annually, aim to curb cost-of-living rises. Economy and Transport Secretary of State David Forné said Monday the executive is monitoring prices, gathering data and engaging stakeholders. Spain's tax relief is set to endure beyond any Middle East stabilisation, such as Strait of Hormuz reopening.