Spain's gas stations are threatening legal action against the government over a controversial fuel discount policy designed to cushion consumers from soaring energy prices. The mandate, in effect until June 30, requires stations to slash prices by 20 cents per liter—15 cents subsidized by the state and 5 cents absorbed by oil companies.
While drivers welcome the relief, station owners describe the policy as a 'financial trap.' Compensation is based on 2021 sales volumes, which were 40% lower due to pandemic travel restrictions, leaving today's reimbursement payouts insufficient. Owners must also front the full discount upfront, squeezing margins as gross profits hover at just 10 cents per liter. Refusing to comply risks losing customers entirely.
'This isn’t sustainable,' CEEES CEO Nacho Rabadan Rodriguez told myglobalnews.net. 'Many stations are being forced to choose between bleeding cash or closing.' The Spanish Confederation of Service Station Entrepreneurs reports over 350 stations temporarily shuttered during Easter due to surging demand—triple April’s figures—with 3,000-4,000 at risk of permanent closure.
Alicia Orgaz, a station owner near Madrid, highlighted the human cost: 'We’re subsidizing fuel with our savings. If this continues, entire communities could lose local services.' As tensions escalate, the dispute underscores wider challenges facing European nations balancing inflation relief with business viability amid energy market chaos.
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Why are Spanish gas stations planning to sue the government?
cgtn.com
