Spanish PM open to extending 20 cent discount per liter of fuel beyond June

The Spanish prime minister, Pedro Sánchez, has opened to extend the 20-cent discount per liter of fuel beyond the end of June, when the decree enabling it expires.

Talking to the press after the EU summit on Tuesday, he said he would do his utmost to "protect families and companies" facing the impact of Ukraine war.

The decree was approved in late March in order to counter the effects of the Eastern European conflict.

"The fact that it was only approved for three months was due to the uncertainty of the war," he said, pledging to decide on the possible extension by June 30.

The piece of legislation was approved by lawmakers in Congress with a very slim majority, which saw Catalan pro-independence Esquerra voting against it and putting an end to its parliamentary alliance with the Socialist-led government in response to Catalangate espionage scandal.

Measures that could be extended

If the decree is in the end extended, the measures that would continue in place would not only affect fuel, but also aid to transport sector and lower taxes in the electricity bill.

Around €6 billion were allocated towards economic aid and tax cuts, while €10 billion more were given out as loans under this decree – companies benefiting from aid should have to pay the subsidies back if they lay employees off.

The legislation that may be extended also affects tenants, who see their new or updated rental contracts increase by at most 2% regardless of the inflation rate.

Inflation still out of control

The measures approved two months ago aimed to lower the inflation rates, which skyrocketed in the first quarter of this year. Yet, prices are still going up at a similar pace, with a 8.7% year-to-year increase in May for the whole of Spain – the latest figure for Catalonia is 8% in April.

"We are feeling the effect of the sanctions to Russia. But if we did not do anything, the cost would even be higher," Sánchez said.