Daily updates

It would appear that, under EU rules, the IVA and special carbon tax placed on petrol and diesel cannot be reduced by the individual countries.
Spain will table a motion at the European summit next week to either cut the taxes or allow individual countries to do so without recourse to the EU.

Whilst the taxes on these fuels aren't as high as UK levies, they still account for 50% of petrol and 45% of diesel prices. If IVA were to be reduced in line with electricity, that would be a cut of about 15 cents on a litre of unleaded in line with the reduction made by France (in France last week the average price for unleaded was €2.11 and has now been reduced to €1.96).

What gets me is the difference the petrol stations are charging. From €1.90 for diesel in one place, €1.62 in another and just €1.54 in another. The capping of profits may be a good way to go.

Some cuts announced on electricity prices. The reduction in IVA to 10% and the lowering of the special electricity tax from 5.11% to 0.5% (the legal minimum) will be extended until June 30th.
However the 7% generation tax will only be suspended until March 31st.

Average electricity prices today will be around 25 cents per kwh with the most expensive (31 cents) between 9 and 11 pm and the cheapest (21 cents) from 3 to 5 am.

A reduction in petrol and diesel taxes will be discussed at the beginning of next week at the European council meeting along with the decoupling of electricity to match gas prices.

Yes it is known as the EU Energy Fuel Directive. You cannot go below a certain percentage on the excise duty. A few EU countries have tabled a motion to give more leeway on the Excise Duty. Natural Gas prices are as volatile as oil prices so I don't know if it will make much difference to electricity prices. Doesn't Spain's gas come from Morocco so not depending on Russia.

Bee

About half of Spain's gas comes from Algeria but the pipeline it comes through passes through Morocco. Those two countries have a dispute going on and have reduced the gas in the pipeline.
As a result, LPG is being shipped by sea which has increased the cost of the gas.

Most electricity stations are powered by gas hence the rise in electricity prices. When the cost of gas goes up, electricity has to match it and this is the bit they want decoupled.

Tx Marcliff. Does any of the oil and gas come from anywhere stable with the exception of UK,USA and Norway! I suppose the vast wealth generated by these minerals leads to corrupt and unstable governments. Panorama last night was about Abramovich and the amount he and his cronies have stolen from the Russian people with impunity. I hope the sanctions strips them of most of their ill-gotten wealth. Trouble is it can't be given back to the Russian people as it would just be stolen again by those in power. Short of becoming completely self-sufficient unfortunately we have no other option except to line their pockets.

Bee

This is probably a stupid question and i am sure i have either overlooked something, or my brains being affected by the dust, but, my electric bill says 100% of the electric was produced using renewable resources. With that in mind, why is it rising so much if that's the case?

One of the last restrictions in this area, the leaving of a spare seat between groups in cinemas, theatres and so on, will be dropped as from tomorrow.

This is also accompanied by the covid passport being no longer required in residential homes.

Getting there.

The EU commission meeting to discuss ways of reducing the prices on fuel is to be held on the 24/25 March.

Spain and Portugal have tabled a motion that the price of domestic electricity be capped at a maximum of 18 cents. Whether this will be successful or not is to be seen.

Several EU countries have tabled a request that countries be allowed to alter the taxes charged on petrol and diesel at the pumps. Already mentioned that Spain wants the 7% hydrocarbon to be put in abeyance and that IVA can be reduced to 10% in line with the IVA on electricity.

The Netherlands and several other countries have tabled a motion that those vehicles licenced to carry goods be exempt from taxes for the time being. How that would work I've no idea unless they go over to the "red diesel" as used in UK (but which is being stopped in UK from April 1st due to "green" policies).

You may be aware that the independent truck drivers are on strike due to the increased prices in fuel. The government have said they will spend 500 million euros on reducing the cost of diesel to the truck drivers but this has not gone down very well with those on strike. They say it will benefit the trucking chains but would not go anywhere near alleviating the problem.

The above has been going on for 9 days now and the fishermen in many areas have also joined the strike over the last 3 days and stay moored in the ports.

Now, the taxi and bus companies have threatened to join the strike this Saturday which could cause chaos.

Big food distributors say they are fighting to keep supplies heading to the supermarkets but some are saying they will have to close production if they can't move their goods. Danone and Heineken are two big ones who say they may have to do this.

Other problems are dairy products which can't be moved, fresh fish and a lot of the stuff the supermarkets are now selling is from frozen stock. Fruit and vegetables are not such a serious problem in this area due to the production that goes on but lots of places are now seeing empty shelves of goods.

The government is approaching the EU to be able to reduce taxes and levy a maximum price the diesel can be sold at but the drivers say this will be too late and are demanding cuts and more subsidies which has been happening in other countries already.

Some fuel prices at the pumps have already been reduced as the price of a barrel of oil came down but those prices are on the rise again. Independent drivers say they can no longer afford to fill their vehicles

You may already have seen some empty shelves and the rising costs in supermarkets. I noticed milk in Mercadona, which was 78 cents a litre and they apologised for putting it up to 80 cents, has again risen to 85 cents a litre. Other shortages, such as some breads and cooking oils, are really down to panic buying and stockpiling as the companies say there is no shortage at the moment. This hasn't stopped the supermarkets raising prices and I note bread has risen (well, it would do with yeast) by 10 cents a loaf and cooking oil almost doubled.

The problem will be when goods sourced outside, lots from S America, arrives at the ports but there are no trucks available to ship them onward.

There has already been several large demonstrations in the cities, including Alicante, protesting about the costs which has caused congestion in many places.

Hopefully they'll be able to sort it out soon.

After a meeting of the Interdepartmental Table for Prevention and Action against Covid-19, the President of the Valencian Region has announced the ending of all covid restrictions in the region except for:
Smoking on the terraces of bars, restaurants, entertainment venues, hotels.
The wearing of face masks indoors.

All other restrictions will be scrapped.

Now, the DOGV has not yet been published but will check later today if the facemask wearing also includes on public transport or in vehicles where the occupants aren't from the same household.
However, there are now no restrictions on numbers at tables, in cinemas, in sporting venues, gyms, theatres etc. and will check on the date this comes into force but assuming it will be from Monday 28th March.

The recommendation is still to wear facemasks in crowded areas or around vulnerable people.
The Minister of Health also pointed out that the incidence of flu in the Region is on the increase and. that there have been 3,000 recorded cases but this is a totally different virus to covid.