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Canary Islands extends tax relief on fuel and energy until the end of 2026
The Canary Islands Governing Council approved a Decree-Law on Monday extending certain tax measures introduced in response to the crisis in the Middle East for the final quarter of 2026. The regional government is thus temporarily maintaining the zero rate of the Canary Islands General Indirect Tax (IGIC) on certain energy products, with the aim of preventing the expiry of the currently applicable measures from translating into higher costs for Canary Islands households and businesses.
Support for farmers and hauliers
The extraordinary mechanism for the partial refund of the Canary Islands Autonomous Community Special Tax on petroleum-derived fuels, covering petrol and professional diesel, will also remain in place during this period. The measure is aimed primarily at farmers and hauliers, sectors that have been particularly hard hit by the evolution of fuel costs.
The Regional Minister for Finance, Matilde Asián, said the extension was a response to the negative effects that energy and transport costs continue to have on Canary Islands families and the productive fabric of the islands. She added that the experience accumulated during the months in which the decree has been in force endorses the measure taken by the Canary Islands government.
Monthly reviews based on fuel price variation
The Decree-Law, which comes into force on 1 October, provides for the removal or phasing out of the measures in October, November and December depending on how fuel prices in the Canary Islands vary with respect to the Consumer Price Index (CPI), taking as a reference a difference of 15% compared with the same month of the previous year.
In other words, if the variation in prices in September and October does not exceed by more than 15% that recorded in the same months of the previous year, the zero rate will cease to apply in November and December respectively.
Professional petrol and diesel rates
With effect from the entry into force of this Decree-Law and until 31 October 2026, the rate for professional petrol and the rate for professional diesel will be €0.2649735 per 1,000 litres and €0.2219778 per 1,000 litres respectively.
If, in September, the variation in the Canary Islands CPI for petrol and diesel exceeds by more than 15% the CPI for the same month of the previous year, the rate for professional petrol and the rate for professional diesel will be €29.15 per 1,000 litres and €24.42 per 1,000 litres respectively.
Finally, if in October the variation in the Canary Islands CPI for petrol and diesel exceeds by more than 15% the CPI for the same month of the previous year, the rate for professional petrol and the rate for professional diesel will be €55.65 per 1,000 litres and €46.62 per 1,000 litres respectively.
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