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5th January 2024, 13:15

​Fuel prices on the Rock rise as import duty discount comes to an end

Published by GBC News

Fuel prices on the Rock have risen now an import duty discount introduced by Government has come to an end.

The discount had been in place for just under two years. Prices on the Rock are pretty close to those in Spain at present, as a result.

In April 2022 the Government introduced a 15 pence discount on import duty for every litre of fuel.

This followed a substantial rise in the cost of petrol following the war in Ukraine and the cost of living. Similar measures were introduced around Europe and the savings were passed on to customers.

The discount ended on the 31st December last year. As a result, the start of 2024 has seen fuel costs locally climb.

In response to a request for comment, the Government has told GBC that the subsidy was actually in place for longer than expected and that it is keeping it under review.

According to representatives in the industry, an average 30 litre tank would now expect to see an increase of around £7.50 when filling up fully.

GBC also understands the price rise has resulted in Gibraltar fuel prices being on par with some in Spain. However, representatives say it is too soon to tell what kind of impact this would have on business just yet. 

FURTHER GOVERNMENT COMMENT

In a further comment on Friday afternoon, the Government said Spain removed the discounted rate on fuel in December 2022, while in Gibraltar it remained in place until the end of 2023.

Number Six says while local suppliers have increased prices, "these are, to a very large extent, still cheaper than the major suppliers in Spain".

It adds the local increase in prices is less than the previous discount of 20 pence, meaning local suppliers have absorbed some of the cost increased by the removal of the subsidy.

Image by Government

Image by Government