Effective 1 October 2026, the Andorran Government has approved a new reduction in hydrocarbon tax rates, lowering diesel by 15 cents per liter and gasoline by 20 cents per liter, extending relief measures initially adopted in June 2026. The measure, enacted through a Ministerial Order under Law 11/2012 on Special Taxes, aims to mitigate inflationary pressures on transport and logistics costs for businesses and households. The reduction applies at the pump and will remain in force until 31 December 2026, subject to quarterly review based on international oil price trends.
Key Takeaways
- Targeted Relief: The differential cut (larger for gasoline) reflects consumption patterns where gasoline dominates private vehicle use, while diesel is critical for commercial freight and public transport.
- Fiscal Cost: The Treasury estimates a revenue foregone of approximately 4.2 million euros per month, offset partially by higher VAT receipts on increased fuel volumes and economic activity.
- EU Alignment: Andorra coordinates hydrocarbon taxation with EU directives via its customs union agreement, ensuring the temporary reduction does not breach state aid rules or distort cross-border fuel markets with France and Spain.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement