Andorra approves regulations to implement measures against rising fuel prices

The Andorran Government approved this Friday, during an extraordinary Council of Ministers meeting, the regulations implementing the Law on temporary measures to address rising hydrocarbon prices. 

The approval allows the measures designed to reduce the impact of higher fuel prices on households and businesses to take effect.

The regulations, which enter into force on Friday, establish the procedure allowing fuel importers and distributors to benefit from a partial refund of the special tax on hydrocarbons provided for under the law.

Operators must prove that the reduction reaches consumers

The new regulations establish the requirements, documentation and deadlines that operators must meet to qualify for the tax refund.

Importers and distributors will have to submit an application to the Department of Taxes and Customs and provide evidence of the litres of fuel sold, the prices charged and the effective impact of the tax reduction on the final consumer.

The department may request additional information to verify compliance with the requirements.

The system therefore links the partial tax refund to the requirement that the reduction be passed on in full to consumers.

Petrol and diesel reductions through September

The law establishes different temporary reductions depending on the type of fuel.

For petrol, the reduction is €0.15 per litre in July, €0.10 in August and €0.05 in September. For road diesel, the reduction is €0.10 per litre in July and €0.05 in August.

The measures are temporary and apply from July 15 to September 30, 2026. According to the Government, the objective is to preserve Andorra’s commercial competitiveness and protect citizens’ purchasing power amid higher hydrocarbon prices.

Government analyses impact of Spain’s diesel cut

Alongside the approval of the regulations, Finance Minister Ramon Lladós and the director of the Department of Taxes and Customs, Carles Ferreira, met with fuel importers on Thursday afternoon.

The meeting came after Spain announced a €0.20-per-litre reduction in diesel prices from September 1.

The Government used the meeting to gather the sector’s initial assessment and analyse the potential impact of Spain’s measure on the Andorran market.

The price gap with neighbouring countries is particularly important for Andorra, both because of its impact on consumers and because of the need for local fuel retailers to remain competitive.

Further measures remain on the table

The Government has reiterated that it will continue to closely monitor fuel prices and the measures adopted by neighbouring countries.

The Executive will assess the measures introduced in Spain and France and, if necessary, consider additional decisions to maintain the competitiveness of diesel prices in Andorra.

The Government says any potential measures will aim to protect both Andorra’s commercial competitiveness and citizens’ purchasing power, as changes in fuel pricing policies in neighbouring countries could significantly alter the existing price differences.