The Canary Islands Government extends the zero IGIC rate for petrol and diesel during August, after June's CPI exceeded 15% variation compared to the previous year.
Canarians will continue to pay less to fill up their tanks throughout August. The Ministry of Finance and Relations with the European Union has confirmed that the zero rate of the General Indirect Canary Tax (IGIC) applied to fuels remains in place, a measure that has been in effect for several months and aims to ease the burden on consumers.
The decision is based on the data from the Consumer Price Index (CPI) for June, which shows a year-on-year increase in petrol and diesel prices in the Canary Islands exceeding 15%. This differential, outlined in Decree Law 4/2026, automatically triggers the extension of the tax reduction.
A measure that began in April and has been consolidated
The zero IGIC rate on fuels was initially approved in Decree Law 3/2026, on April 6, as part of a package of measures to address the energy crisis. Subsequently, on June 29, the Canary Islands Government approved Decree Law 4/2026, which extended the measure until September 30, but conditioned on the evolution of the CPI. Now, with the June data available, the extension to August is confirmed.
The ministry led by Matilde Asián has explained that the measure has proven effective in containing prices. During the months it has been in effect, a greater increase in fuel prices has been avoided, benefiting both households and businesses in the Canary Islands.
Direct impact on the wallets of Canarians
For the average citizen, the reduction is noticeable every time they visit the petrol station. The IGIC in the Canary Islands is generally 7%, but with the zero rate, the savings per litre of petrol or diesel is around 10 cents. In a typical 50-litre tank, the savings amount to about 5 euros, a sum that, when added month by month, eases the family budget.
The sectors most dependent on fuel, such as transport, agriculture, or fishing, are the main beneficiaries. The measure reduces their operating costs and improves their competitiveness in a context of high energy prices. The transport employers' association has positively assessed the continuation of the reduction, although it insists on the need for long-term structural measures.
The Canary Islands Government reminds that the extension is subject to monthly review. If in July the CPI differential remains above 15%, the zero rate will also be maintained in September. Otherwise, the general rate of 7% will be reinstated.
Meanwhile, Canarian drivers can breathe easy: at least during August, filling up will continue to be a bit cheaper.
You may also like
