Duty on fuel lowered as CM warns of ‘tough’ budget

Chief Minister Fabian Picardo yesterday warned of a “tough” budget as the Gibraltar Government announced it will lower the duty on the price of fuel as it takes action to help consumers.

The duty on diesel will be reduced by 15 pence so that 40 pence of duty per litre has been reduced to 25 pence of duty per litre, a spokesman for No.6 Convent Place said.

As a result, the duty on petrol is also reduced as follows, depending on the octane, namely: 98 which is 37 pence of duty per litre; 95 which is 38 pence of duty per litre; and diesel premium which is 37 pence of duty per litre, are all reduced to 25 pence of duty per litre.

The Gibraltar Gazette on Thursday will provide for the discount.

These reductions apply for the period to July 1 and applies to fuel from petrol stations for cars and motorbikes, not marine fuel, the Government spokesman added.

After July 1, the duties will revert automatically to their original level, unless the Government otherwise makes separate provision for alternate rates to apply.

The rise in the cost of fuel globally sparked a 20-day strike among lorry drivers in Spain as the price of fuel reached the €2 per litre mark last month.

The effects of which were felt in Gibraltar as there were worries of fuel shortages locally, which led to motorists panic buying fuel at the Rock’s petrol stations.

The war in Ukraine and economic sanctions against Russia have shaken the price of fuel around the world, with retail gasoline and diesel prices soaring to record highs in many countries across the world.

The strike was called off when the Spanish Government said it will apply a 20 cent discount per litre of fuel as from April 1.

Similar steps are now being taken in Gibraltar.

“We are taking steps to reduce duties and to help consumers with this reduction of duties in fuels, and we expect petrol stations to pass this on to their customers,” Mr Picardo said.

“We want to help where we can and this measure is one where we consider the help we provide may also drive up revenue for Government from this source of duties.”

“We are conscious of the steps being taken in neighbouring Spain on fuel duties and subsidies, and we are responding to that also through these measures.”

“This year's Budget will be a tough one, with no give-aways, and I am timing the period of this reduction towards the traditional dates of our Budgets, so I can then take a view of whether to reverse, increase or reduce this measure as I may be advised is appropriate then.”