Andorran Fuel Importers Meet Minister Over Shrinking Price Edge Against Spain

Andorran fuel importers held an initial meeting with Finance Minister Ramon Lladós and Tributs Director Carles Ferreira on Friday to present data highlighting the shrinking price differential with Spain following Madrid's recent tax cuts on fuels.

David Porqueres, president of the Associació d’Importadors i Distribuïdors de Carburants d’Andorra (Asidca), along with vice-president Carles Visent, shared comparative price tables showing how Spanish low-cost stations are now undercutting Andorran prices in some cases. Spain's measures, including an IVA reduction from 21% to 10% effective from March 20 and cuts to special hydrocarbon taxes, could lower prices by up to 30 cents per litre. Porqueres noted that while Andorra remains slightly cheaper for now—diesel at 1.67 euros per litre versus 1.79 in Catalonia, and 95-octane petrol at 1.547 versus 1.599—the full impact will take 10-15 days as distributors apply the special tax relief.

The meeting focused on providing factual updates rather than specific demands, amid rising global oil prices driven by the Middle East conflict. Since late February, diesel has climbed 38 cents per litre and petrol 25 cents, narrowing Andorra's traditional edge from 25 cents to half that level. Porqueres warned that without action, lower sales could reduce state tax revenue from fuels, including the 4.5% IGI, the CO2 tax (taxa verda), and special hydrocarbon duties—0.407 euros per litre for unleaded petrol and 0.247 for diesel.

Earlier in the week, on Wednesday, Economy Minister Conxita Marsol described the government's approach as offering an "open hand" and good faith to explore options like tax adjustments. She confirmed Lladós had received Asidca's initial request on Tuesday, stressing any changes would aim to restore competitiveness for consumers while undergoing parliamentary approval and co-princes' sanction, potentially taking weeks even under urgency procedures.

Porqueres emphasised that competitiveness requires tweaking taxes given fixed purchase costs, stating the sector had shown restraint in price hikes. No decisions emerged, with the government now reviewing the data internally. Transport firms, facing higher costs—a Barcelona trip now 60-70 euros more expensive—are preparing separate requests to build on existing subsidies offering up to 0.24 euros per litre for certain vehicles.