Spaniards welcome cut on fuel prices as government measures come into effect

People in northern Spain welcomed the VAT reduction on fuel prices, as the measures government approved to counter the economic impact of the Middle East crisis came into effect on Sunday (March 22).

The proposed measures, worth 5 billion euros ($5.8 billion), include a fuel price VAT reduction from 21 to 10 per cent, meaning a cut of up to 30 cents per litre.

"I don't think it's that much either because petrol prices have been increasing a lot but well this is something at least, and I think that's great," said Amaia Urresti after refueling her motorbike in the town of Muxika, in the Basque Country.

The measures, which require approval from parliament to extend them for longer periods of time, also include the reduction of value-added tax on electricity bills to 10% and a fuel subsidy of 20 cents per litre for the farming and transport sectors, which are some of the most exposed to the sharp spike in energy prices caused by the war.

Prime Minister Pedro Sanchez, who is among the most vocal critics of the U.S.-Israeli attacks on Iran, said the measures would be in place for as long as necessary but that "no plan can neutralize the misery of this illegal war".

Production: Vincent West, Miguel Gutierrez/Reuters