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Government to Increase Diesel Tax Reduction to 20 Cents in September
The impact of rising diesel prices prompted the Government to raise the tax reduction in September, correcting last month's inflation.
The Government has announced that the diesel tax reduction will be raised to 20 cents in September. This decision comes in response to a significant increase in diesel prices, which surged by 15.7% in July compared to the same month last year, exceeding the 15% threshold set in the decree of measures to mitigate the impact of the war.
According to El País, the National Statistics Institute (INE) adjusted July's inflation rate, which stands at 3.6%, driven by rising fuel and electricity costs. This adjustment aligns with the alarming increase in diesel prices, which triggered the activation of the safeguard clause in the Response Plan.
For its part, El Mundo notes that while it was initially expected that the diesel tax reduction would decrease to 5 cents in September, the spike in fuel prices has led the Government to make this decision.
This increase in the tax reduction aims to alleviate the economic burden on consumers in light of rising prices, although it remains unclear how this might affect inflation in the following months.