The Spanish government has approved a third package of measures to protect households and businesses from rising energy prices and the consequences of the conflict in the Middle East. The new measures include tax reductions on petrol and diesel, limits on increases in regulated gas tariffs, the continuation of social benefits and an extension of support for the sectors most affected by the crisis.
Royal Decree-Law 25/2026 was approved on September 29, 2026, and ratified by the Congress of Deputies on October 16. Most of the new measures apply to the final quarter of 2026, although some restrictions will remain in force in 2027.
Combined, the three anti-crisis packages adopted by the government since the beginning of the energy crisis involve public spending of more than €12 billion.
Inflation in Spain Reached 4.9% in September 2026
The extension of government support comes amid continued increases in fuel and other energy prices, which are affecting household and business expenses.
According to final figures published by Spain’s National Statistics Institute (INE), annual inflation reached 4.9% in September 2026, up 0.6 percentage points from August.
This was the highest rate since February 2023. Meanwhile, core inflation, which excludes unprocessed food and energy products, reached 3.1%.
The government notes that higher energy costs are gradually feeding through into the prices of other goods and services. Support measures are therefore expected to be phased out gradually, depending on developments in international markets.
Fuel Tax Reductions Extended Until the End of 2026
One of the main measures in the new package is the extension of reductions in the Hydrocarbons Tax (Impuesto sobre Hidrocarburos), intended to help contain petrol and diesel prices.
The standard schedule of tax reductions is as follows:
- October 2026 – 20 cents per litre.
- November 2026 – 13 cents per litre.
- December 2026 – 6 cents per litre.
However, an automatic adjustment mechanism is also предусмотрен. If the consumer price index for petrol or diesel in September 2026 is more than 15% higher than in September 2025, the tax reduction for the relevant type of fuel will remain at 20 cents per litre in November and fall to 13 cents in December.
If the annual price increase for a particular fuel exceeds 15% in October, the maximum reduction of 20 cents per litre may also apply in December.
Important: this is a tax reduction, not a separate payment to motorists. Actual prices at filling stations also depend on wholesale fuel costs and individual retailers’ pricing policies.
Limits on Increases in Regulated Natural Gas Tariffs
The government has reinstated a special mechanism to protect consumers on Spain’s regulated natural gas tariff, known as the Tarifa de Último Recurso (TUR).
In September 2026, natural gas prices on the European market exceeded €80 per MWh. Without government intervention, the October 1 tariff review could have resulted in household bills rising by more than 45%.
To prevent such a sharp increase, the authorities have limited the impact of market gas prices on the tariff calculation formula.
Under the new rules, the gas cost component used in the October review may increase by no more than 35% compared with its previous level. This is expected to limit the overall increase in the TUR tariff to approximately 15%.
At subsequent quarterly reviews, increases in the gas cost component will also be capped at 15% until the system’s accumulated shortfall has been recovered and its balance restored.
The measure is particularly important ahead of the winter heating season and is intended to protect households and small businesses using the regulated tariff. More than three million consumers are covered by TUR.
Maximum Butane Cylinder Price Set at €19.55 Until June 2027
Another measure concerns household butane, which many Spanish households use for cooking, heating water and space heating.
The government has set a maximum regulated price of €19.55 for a standard butane cylinder until June 30, 2027.
When the decree was approved, the maximum price stood at €18.84.
Under normal circumstances, the regulated retail price of bottled liquefied petroleum gas (LPG) is reviewed every two months, with changes limited to 2% in either direction at each review.
The new price ceiling is intended to prevent substantial increases in the cost of this essential energy source amid instability in international energy markets.
The ceiling applies to the regulated product, rather than all gas cylinders sold on the open market.
VAT on Electricity and Gas Could Fall from 21% to 10%
The new package also establishes a mechanism for temporarily reducing value-added tax (VAT, known as IVA in Spain) on certain energy products.
Where the legal conditions are met, VAT rates may be reduced as follows:
- Electricity – from 21% to 10%.
- Natural gas – from 21% to 10%.
- Fuel briquettes, biomass pellets and firewood – to 10%.
However, these reductions do not automatically apply to every consumer. Their implementation depends on changes in the prices of the relevant energy products.
For November 2026, the condition is that the relevant consumer price index for electricity or natural gas in September must exceed its September 2025 level by more than 15%.
For December, an equivalent comparison will be made between October 2026 and October 2025.
If the relevant condition is met, the reduced VAT rate on electricity will apply to:
- Consumers with a contracted electricity capacity of no more than 10 kW.
- Recipients of the bono social eléctrico who are officially classified as severely vulnerable consumers or severely vulnerable consumers at risk of social exclusion.
In addition, if a separate condition concerning electricity price increases is met, the Special Electricity Tax (Impuesto Especial sobre la Electricidad) may be reduced from 5.11269632% to 0.5%, subject to the applicable minimum taxation requirements.
Consequently, an increase in Spain’s overall inflation rate to 4.9% does not, by itself, trigger an automatic VAT reduction on utility bills.
Electricity Bill Discounts and Protection for Vulnerable Households
Alongside the new measures, the government has maintained previously approved social protection schemes for households throughout 2026.
Additional discounts under the bono social eléctrico programme remain in force:
- 42.5% for officially recognised vulnerable consumers (consumidores vulnerables).
- 57.5% for severely vulnerable consumers (consumidores vulnerables severos).
The minimum payment under the bono social térmico heating assistance programme also remains increased to €50. This support is intended to help cover heating, hot water and other household energy costs.
Throughout 2026, the prohibition on disconnecting essential utilities, particularly electricity and water, also remains in force for households meeting the legally established vulnerability criteria.
Important: eligibility for social energy discounts depends on household circumstances, income, consumer classification and other statutory requirements. Holding Spanish residency status does not automatically entitle a person to the bono social.
Support for Transport Companies, Agriculture and Fisheries
The new package extends support for professional sectors particularly affected by rising fuel costs.
Additional assistance is available to road transport operators entitled to a partial refund of the tax on professional diesel fuel (gasóleo profesional):
- October – 5 cents per litre.
- November – 12 cents per litre.
- December – 19 cents per litre.
These amounts may change depending on the diesel tax reduction applicable in each month. The mechanism is designed to coordinate total assistance to transport operators with existing tax relief.
Support also remains available, subject to legal requirements, for certain categories of professional road transport operators that are not entitled to a professional diesel tax refund.
Assistance for the agricultural sector has been extended until December 31, 2026. In particular, the measures include relief equivalent to 20 cents per litre of agricultural diesel.
Compensation for fishing vessel owners also continues, helping to offset part of the increase in fuel expenses.
New Assistance for Rail Freight Operators
One of the new measures introduces a separate government support programme for rail freight transport.
Assistance will amount to €15,000 for each diesel locomotive meeting the programme’s eligibility requirements.
The measure is intended to compensate operators for part of their increased running costs.
Separate support mechanisms for maritime transport also remain in place.
Employment Protection and Energy Security
In addition to financial assistance and tax relief, the anti-crisis package includes employment protection measures.
Companies receiving the relevant government support are subject to restrictions on dismissals based on circumstances associated with the energy crisis, in accordance with the conditions established by law.
To strengthen energy security, Spain is increasing its liquefied natural gas (LNG) reserves for the winter period, aiming to reduce the risks of supply disruptions and sudden demand increases.
The country is also continuing to develop its Energy Savings Certificate system (Certificados de Ahorro Energético, CAE), which encourages investment in improved energy efficiency.
What the New Anti-Crisis Measures Mean for Residents of Spain
The approved changes affect several major areas of household and business spending.
For motorists, the most significant measure is the reduction in taxes on petrol and diesel until the end of 2026.
For natural gas consumers, increases in the regulated TUR tariff are restricted, while users of household butane benefit from a maximum regulated price of €19.55 until June 30, 2027.
For households paying utility bills, tax relief and social discounts remain available, although eligibility depends on specific conditions, including the type of contract and energy price movements.
For businesses and self-employed professionals in transport, agriculture and other affected sectors, direct financial assistance and special fuel cost compensation measures have been extended.
The Spanish government intends to adjust these support measures as energy markets stabilise. When planning expenses or applying for assistance, it is therefore important to check the precise expiry dates and eligibility requirements established in the relevant legislation.
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