“Demand has doubled, but usage has not”, said Chris Bowen, Australia’s Minister for Climate Change and Energy, in a parliamentary debate that more closely resembled a farce, were it not for the fact that following the blocking of the Strait of Hormuz, a liter of gasoline has surpassed 3 dollars (1.80 euros) and more than a hundred gas stations have run out of fuel.

Politics shouldn't be all about pronouncements and grand gestures. Pragmatism is also essential. In short, it's about being practical so that citizens, those governed, feel they aren't being abandoned when times get tough. And this seems to be the path the Spanish government has taken with the package of measures designed to mitigate the effects of the war in the Middle East. The conflict, whose end appears far off, has driven up gas and oil prices and, consequently, the prices of everything related to them, such as fuel and electricity. That's why the measures announced by Pedro Sánchez will amount to around 5 billion euros, far less than the more than 20 billion mobilized in 2022 following the invasion of Ukraine—but we are still in the early stages and don't know how long the war might last. The first decree focuses on reducing energy taxes, one of the services most affected by the impact of the Middle East crisis, and one that could have ripple effects throughout the economy. In addition to lowering the VAT on electricity and gas from the current 21% to 10%, as well as on biomass raw materials such as pellets and firewood, the energy production tax, currently at 7%, is temporarily eliminated and reduced from 5.5% to a special rate of 0.5%. Maximum retail prices for butane and propane are also frozen. The VAT on gasoline and diesel is also reduced, which, according to the Prime Minister's office, will result in a savings of approximately 30 cents per liter when filling up. Consumer organizations estimate that the reduction will be around 17 cents for diesel, which has seen the largest price increase. A key point, also included in the decree, is granting the National Commission for Markets and Competition (CNMC) new supervisory and sanctioning powers to prevent operators from exploiting the tax cut to increase their profit margins and enrich themselves. This is essential to prevent the tax reduction from benefiting certain companies more than citizens and, therefore, taxpayers.

The price war at gas stations has erupted. At least temporarily, and with greater savings the more contracts and service agreements signed with the companies. This comes after fuel prices soared the day after the outbreak of war in the Middle East and the surge in oil prices, which reinforced the situation. from the control of abuses by the National Commission for Markets and Competition (CNMC)The major companies have entered into a price war ahead of Easter. In any case, the biggest discounts are obtained if other services related to electricity or gas are contracted.

The US and Israeli attacks on Iran are already impacting people's wallets. The situation will worsen the longer the conflict lasts and the longer it takes to resolve the closure of the Strait of Hormuz, through which a fifth of the world's oil and gas passes. "Nobody knows what will happen tomorrow, but we do know that the risk is very high," says Javier Díaz-Giménez, a professor at IESE Business School. The problem is that we are in a context of uncertainty and volatility, adds Pedro Aznar, an economics professor at ESADE Business School.

The Spanish government is working on a package of measures to address the economic consequences of the war in the Middle East, especially the surge in energy prices. Meanwhile, employers' associations, unions, and various sectors of the economy are already presenting them with different demands, some of which share a common denominator: a tax cut. In fact, following the round of political talks between the Ministry of the Presidency and the parties in Congress, this Thursday morning it is the turn of the major unions and employers' associations: CCOO, UGT, CEOE, and Cepyme will meet with the Spanish government's economic ministers at the Ministry of Economy.

Fuel prices began 2026 continuing the downward trend that began in December, marking their fifth consecutive week of decline and accumulating a drop of almost 5%. Specifically, in the last week of 2025, the average price per liter of gasoline fell by 0.76% to €1.44, bringing the total decrease since the beginning of December to 3.29%, according to data from [source missing]. EU Oil Bulletin