Andorra Transport Firms Impose Fuel Surcharges as Iran Conflict Drives 4.1% Inflation

Transport companies in Andorra are imposing fuel surcharges on services as petroleum prices climb due to the Iran conflict, pushing March inflation to 4.1%. The government is monitoring the IPC weekly, analyzing tax relief proposals from fuel importers, and anticipates a potential easing of fuel costs soon.

One transport firm notified clients of a 6.5% increase starting April 8, requesting understanding for the adjustment. Miquel Martínez, manager at GTT, noted that rising fuel costs impact everyone and said his company is discussing either broad rate hikes or specific fuel supplements with customers. "Some clients get it, others resist," he added, describing negotiations as challenging.

Josep Magallón, manager of Transports Logístics Internacionals—which coordinates freight without owning vehicles—confirmed the firm is adding service corrections and supplements to cover provider increases. "We must pass on what transport companies charge us," he explained, describing the environment as erratic and requiring constant tweaks.

These rises cascade through supply chains, inflating goods prices and squeezing margins. Firms with fixed contracts struggle to absorb logistics surges without passing them on, risking delays, renegotiations, or stalled projects—especially in import-reliant sectors. Businesses warn of threats to competitiveness and call for stabilizing steps, pointing to Spain's fuel tax reductions as a model.

Government spokesperson Guillem Casal, at Wednesday's council of ministers briefing, pointed to recent oil price flattening as a possible relief signal, though levels remain 12-15% below 2022 Ukraine war highs. He attributed inflation mainly to the Iran situation.

That morning, officials reviewed proposals from last week's positive meeting with Assidca importers. Casal outlined viable future options like cuts to the green tax, special fuel tax, or IGI—key pump price components—but said evaluations continue on effects for citizens, the budget, and existing aids such as free public transport (€12-13 million annually) and stable electricity rates. Any steps must be feasible, affordable, and truly curb inflation, with more data needed.

The ATMCA transport association will soon convene its board to outline demands, as manager Mònica Dalmau voiced sector anxiety over fuel costs and potential actions. No firm decisions have emerged.