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Date Published: 23/03/2026
Fuel prices plummet across Spain following VAT reduction
Drivers in Spain are seeing drops of up to 30 cents per litre but costs are still far higher than before the crisis

Drivers across Spain are finally seeing some relief at the pumps, with fuel prices dropping following new government measures aimed at easing the pressure on households.
The changes, which came into force on Sunday March 22, include a reduction in VAT and other tax adjustments designed to bring down the cost of petrol and diesel. The move comes after weeks of rising prices linked to tensions in the Middle East, where conflict involving the United States, Israel and Iran has pushed global oil markets higher.
In many parts of Spain, prices had climbed above €2 per litre, leaving drivers facing some of the highest costs seen in recent years. Since the new measures were introduced, prices have fallen by around 20 to 30 cents per litre depending on the petrol station.
In major cities, the drop is already noticeable. Unleaded 95 is now sitting at around €1.62 per litre in Madrid and €1.60 in Barcelona. Elsewhere, drivers in Valencia and Seville are paying slightly less, with prices hovering around €1.59 and €1.57.
Some areas are still feeling the pinch more than others. In provinces like Guadalajara, prices remain among the highest in the country, with petrol still above €1.62 per litre and diesel edging close to €1.83.
While the reductions are welcome, they don’t change the bigger picture. Filling up a car is still a significant expense for many households, and prices remain well above what drivers were used to before the recent surge.
Find all the latest motoring and travel news here or join our Driving in Spain Facebook group for regular updates
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