Pedro Sánchez will raise the price of diesel to raise 2,100 million

The new blow to diesel will be led by the PSOE Government headed by Pedro Sánchez, with a 9.55 cent per litre increase in the price of diesel.

The threat of a rise in the price of diesel has been looming for some time and is increasingly likely to become a reality. The latest news, reported first by the economic daily Expansión, points to a sharp increase in the special tax on diesel that would bring the price of diesel level with that of a litre of petrol. The increase would mean paying 9.55 cents more for every litre of fuel.

Environmental taxation

The revenue-raising policies of the Government of Pedro Sánchez will receive a new boost through environmental taxation. The intention of the PSOE’s economic programme is to turn higher tax revenue into more spending on the fight against climate change. This is how the rise in the price of diesel is justified, given that it is far more polluting than petrol.

A commitment to the ecological transition of the economy that will have its first effect with the increase in the special tax on diesel. Until now, the special tax on petrol stands at 40.25 cents per litre, while diesel remains at 30.7 cents. Now, the PSOE will progressively seek to equalise this tax.

With a 9.55 cent per litre increase, the price of diesel would be on a par with petrol and the Government would achieve extra revenue of 2,140 million euros. However, the increase in this tax will not be implemented immediately.

Always according to Expansión, sources close to the Government anticipate a gradual increase in this tax, raising “600 million in the first year” and so on. What does seem clear is that the price of diesel is set to rise shortly, since the Government has already begun the process, with a working team shaping the proposal. Another blow to a fuel that is in freefall.