What is happening
The European Commission published the proposal after requests from Spain dated 29 June and 15 July 2026. It would authorise lower excise-duty rates for gas oil, or diesel, unleaded petrol and blends containing bioethanol, biomethanol or biodiesel when used as motor fuels. Excise dutyA tax on energy products that contributes to the final price of fuel. is a tax component that contributes to the final fuel price.21
Spain had reduced its Mineral Oil Tax to the EU minimum levels through 30 June under a March decree. A decree adopted on 29 June maintained certain measures while allowing their gradual withdrawal if energy markets stabilised. Spain said the July reduction was 15 euro cents per litre against rates applying before the Middle East conflict. Larger reductions would apply if July prices were more than 15% above July 2025, according to consumer-price data published in August by Spain’s National Statistics Institute.2
Why it matters
The Energy Taxation DirectiveEU law requiring Member States to tax energy products and electricity and setting minimum taxation levels, including for motor fuels. requires EU countries to tax energy products and sets minimum levels for motor fuels. Article 19 creates a route for exceptions: following a Commission proposal, the Council may unanimously authorise a country to apply an additional exemption or reduction for specific policy considerations. Spain therefore sought Council permission for rates below the EU floors.23
Spanish authorities say the measure aims to limit the effects of higher fuel prices on households and companies, either directly or through knock-on price increases. The Commission considers the short-duration request adequate and proportionate in the circumstances and unlikely to hinder the EU internal market. The Commission also says tax reductions carry fiscal costs and tend to increase fossil-fuel demand, so those effects should be assessed.2
What happens next
In its 20 August proposal, the Commission asked the Council to approve the Article 19 authorisationPermission the Council may grant unanimously, following a Commission proposal, for a Member State to apply an additional tax exemption or reduction for specific policy considerations. unanimously through a decision addressed to Spain. The proposed authorisation would apply only to Spain and cover the three-month period from 1 July through 30 September 2026.2