Index
What is the VAT rate on petrol in Spain?
The VAT applied to fuels is 10%, rather than the standard rate of 21%. This reduction is in place until 30 June 2026 and is applied automatically at all service stations, both traditional and low-cost.
The measure applies to all fuel types: 95 and 98 petrol, diesel, biofuels and LPG. You don't need to do anything: the discount is reflected directly in the price displayed on the forecourt panels and on your receipt.
The measure remains subject to the evolution of the fuel CPI. The government could extend it beyond June 2026 or allow it to revert to 21%, depending on the economic situation.
How the final petrol price is calculated: a full breakdown
The price you see at the pump is made up of four elements:
- Base fuel price: The cost of production, refining and transport. It fluctuates according to the price of crude oil, the euro/dollar exchange rate and logistical costs.
- Special Tax on Hydrocarbons (IEH): A fixed tax per litre. For unleaded petrol, this is around €0.46/litre; for diesel (Gasóleo A), around €0.31/litre.
- VAT: Calculated as a percentage of the base price plus the IEH. In other words, you pay VAT on top of another tax, which pushes up the final cost.
- Distribution margin: The service station's operating costs, transport and commercial margin.
This breakdown explains why fuel prices are so sensitive to international shifts and fiscal decisions.
How much you save with the temporary VAT reduction to 10%
The difference between paying 21% and 10% VAT adds up considerably over the course of a year. Here's an example based on a 50-litre tank of 95 petrol:
- Pre-VAT cost: €70 (base price + IEH: €1.40/litre).
- With 21% VAT: €84.70.
- With 10% VAT: €77.
- Saving per tank: €7.70.
Estimated annual saving:
- Filling up twice a month: approx. €185 per year.
- Filling up four times a month: approx. €370 per year.
Your actual saving will depend on the base fuel price, how often you fill up and the size of your tank. If you'd like to cut your costs even further, take a look at our tips for saving fuel through efficient driving.
How long will the reduced 10% VAT rate last?
The 10% VAT reduction is confirmed until 30 June 2026. If it is not extended, VAT will automatically revert to 21%, which would mean an increase of between 8 and 10 cents per litre.
The government has renewed this measure several times since it was first introduced in 2022, always tied to the fuel CPI. Historically it has been extended on multiple occasions, but there is no guarantee the same will happen in 2026.
After 30 June:
- Without an extension: fuel prices will rise by 8 to 10 cents per litre.
- With an extension: the outcome will depend on new economic conditions.
Other taxes that affect the price of fuel
The Special Tax on Hydrocarbons (IEH) carries the greatest weight in the final price. Unlike the percentage-based VAT, the IEH is a fixed amount:
- Unleaded petrol: approx. €0.46/litre.
- Diesel (Gasóleo A): approx. €0.31/litre.
This tax accounts for between 30% and 40% of the final price, far more than VAT. That's why, even with a lower VAT rate, fuel prices remain high.
Spain's fuel taxation is relatively lower than the European average. In countries such as France, Italy and Germany, hydrocarbon taxes are even higher.
VAT differences by fuel type
The 10% VAT reduction applies to all automotive fuels:
- 95 and 98 petrol
- Diesel (Gasóleo A)
- Biofuels
- LPG (AutoGas)
Exceptions:
- Professional Gasóleo B: Some hauliers may be eligible for additional support measures.
- Transport professionals: Specific support schemes and rebates are available.
If you're self-employed or a transport professional, look into the fuel allowances and subsidies available to you. After 30 June 2026, without an extension, all of these fuels would revert to the standard 21% VAT rate.
Frequently asked questions about petrol VAT
Is petrol VAT the same across all of Spain?
Yes, the 10% VAT rate applies across the entire Spanish territory, including the Canary Islands, Ceuta and Melilla.
Why is VAT calculated on top of the Hydrocarbons Tax?
Because VAT is levied on the total value of the product, including any taxes already applied. You pay VAT on the base price plus the Special Tax on Hydrocarbons.
Can I reclaim the VAT on petrol if I'm self-employed?
Yes, you can deduct VAT on your quarterly tax returns if the fuel is linked to your business activity. Check with your tax adviser for the applicable deduction percentages based on your tax status.
How much would I pay if VAT went back up to 21%?
A 50-litre tank that currently costs €77 would rise to €84.70, an increase of €7.70 per fill-up. Over the course of a year, that could add up to between €185 and €370 extra.
Is the VAT on diesel different from that on petrol?
No, both carry the same 10% VAT. However, the Special Tax on Hydrocarbons is lower for diesel (€0.31/litre) than for petrol (€0.46/litre), which is why diesel tends to be cheaper.
Which EU countries have the lowest fuel VAT?
Luxembourg has one of the lowest VAT rates (17%). Spain, with its temporary 10% rate, is currently well below the European average. Countries such as Denmark, Italy and Greece apply VAT rates above 20%.
Can fuel ever be purchased without VAT?
Not for private individuals. Only certain professional activities allow VAT to be reclaimed afterwards through tax filings.
How does the euro/dollar exchange rate affect petrol VAT?
The exchange rate affects the base price (since oil is traded in dollars), not the VAT percentage itself. However, if the base price rises, the absolute amount of VAT paid also increases.
Does LPG (AutoGas) carry the same VAT?
Yes, LPG also carries the 10% VAT rate. It also tends to have a lower base price and additional tax benefits, making it a more affordable and sustainable alternative.
Which body ensures that service stations apply the correct VAT?
The Tax Agency (Agencia Tributaria) and the regional consumer protection authorities oversee correct application. If you notice any irregularities, you can file a complaint with the consumer office in your autonomous community.
The 10% petrol VAT rate offers a real opportunity to save until June 2026. Make the most of this period to manage your fuel consumption wisely and keep an eye out for any potential extensions. At Moeve, we're here to help you move smarter, with quality fuels and services designed with you in mind.
