Andorran Drivers Flock to Spain for Cheaper Fuel as Prices Undercut Local Stations

Andorran drivers are increasingly crossing into La Seu d'Urgell for cheaper fuel amid queues at the popular Esclatoil low-cost station, as Spanish prices undercut those in the Principat despite a recent stabilisation following a minor price dip.

At Esclatoil, part of the Esclat Bon Preu group that opened last year in the Alt Urgell capital, 95 octane unleaded costs €1.417 per litre with a loyalty card, while diesel is €1.498. Andorran stations charge between €1.628 and €1.641 for unleaded 95, and €1.668 to €1.675 for diesel. Pumps in Escaldes-Engordany and Pas de la Casa saw a roughly five-cent drop about 10 days ago, but prices have held steady since, according to local outlets.

David Porqueres, president of the Andorran Fuel Importers Association, said Spanish tax reductions—including VAT cuts from 21% to 10% and adjustments to special duties—have eroded local competitiveness. Recent Statistics Department figures show April imports fell, costing the government some €300,000 in revenue. The association flagged this risk to Finance Minister Ramon Lladós two months ago, but no further discussions have taken place.

Porqueres warned of ongoing losses into May and criticised government inaction, saying officials have monitored prices without responding to sector concerns. "They could have told us something, even if just that they won't act," he remarked, adding that repeated assurances of oversight amount to "monitoring to do nothing." He fears long-term habit shifts among consumers, though he expects Andorran prices to regain an edge once Spain's measures expire on 30 June.

The differential exceeds 20 cents per litre at low-cost Spanish sites, reversing decades of Andorrans attracting Spanish and French buyers over the Farga de Moles border. Amid oil market volatility from Middle East tensions—including US and Israeli actions against Iran and partial Strait of Hormuz disruptions—Andorran diesel prices have climbed over 30% and unleaded 95 by about 23% from three-month-old levels near €1.26 and €1.30 per litre. Spain's March steps under Pedro Sánchez have so far curbed sharper rises, while Andorra's administration under Xavier Espot has kept taxes unchanged. Porqueres stressed prices hinge on crude oil trends and conflict developments, leaving the sector in uncertainty.