Ribera rules out raising the diesel tax in the midst of the energy crisis and opens the door to lower the VAT on gas

The third vice president and minister for the Ecological Transition confirms that a new tax would harm those who need it most.

Ribera does not rule out high gas and electricity prices until well into 2022

The Third Vice President and Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, has ruled out that, in the current upward trend in fuel prices, taxes on diesel will be raised.

In statements to RNE collected by Efe, Ribera recalled that in recent months there has been a “very notable” increase in the price of fossil fuels in international markets, so introducing a new diesel tax would be “extremely sensitive”, as it would “harm those who need it most.”

In his opinion, “you have to be careful” with the moment in which it is introduced and with the destination of the resources obtained. Taxation is a “very notable and very important” remuneration element, which is why he does not understand that statements are still being heard “rather to the contrary”, in which it is committed to “drastically reduce taxation” because that way “we are hardly going to to be able to accompany and generate opportunities ”.

Gas VAT reduction

Asked about the demand of the gas marketers to reduce VAT as has been done with electricity, the fourth vice president replied that “It must be managed with prudence”, with “our colleagues from the Treasury”. He recalled that the Government has already lowered the taxation of electricity and has put a maximum cap on the gas bill in the rate of last resort.

As to whether the next stops of the Almaraz and Cofrentes nuclear power plants may further stress the price of electricity in a dry autumn, Teresa Ribera has said that they were already scheduled (for maintenance and refueling). Although the Government asked that they not be so close, it indicates that they will coincide with the month of November, which is windy, which will be compatible with an increase in the wind power generation.

Ribera has also referred to the diplomatic crisis between Algeria and Morocco, which caused the closure of the gas pipeline that fed Spain through the latter country. He has highlighted from it that it generates “concern” because they are neighboring countries, to which we must pay attention, accompany and facilitate the best understanding and the best bilateral relationship with Spain.