Govt ready to limit rebate on fuel to minimum income

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Teresa Ribera has raised the possibility of “precise” who should benefit from the measure if it can be done “agile and quickly”.

Teresa Ribera, during the second expansion stage
Teresa Ribera during the Second Expansion Forum.Mauritius ScreamyWorld

Third Vice President and Minister of Energy Transition, Theresa Riverahas opened a door for the possibility that the fuel discount will not be applicable to all consumers when it is extended till September 30. Ribera said the government is studying whether the measure can be implemented more effectively so that the cuts reach those who need it most.

Thus, as Ribera pointed out in an interview on TVE, the government plans to revise the exemption upon renewing – it was announced a few weeks ago that it would be extended, since in theory it would only last until June 30. Will apply – but only if one is found It goes “faster and faster” to,

“We’re going to see if there’s a way It is best to specify who are the target subjects in favor of these measures.“, declared the Minister of Energy Transition. If the formula for making changes is not found, the government intends to “continue to operate with the protection that we approved in March”.

Ever since it became operational, voices have been raised against the aid, for example, as an EsadeEcPol report described “poor efficiency“Because” it benefits from a higher income. Even within the executive there were voices following this line, as the second vice president and the labor minister himself, yolanda yesz has clashed with the Minister of Finance, Maria Jesus Monteiro, due to the lack of ‘pointing’ of the bonus. In the opinion of Alberto Garzón’s Daz-also, who considers these to be “regressive measures”—”Continuing subsidy without income bias is not right,

A recent survey by the Registry of Fiscal Advisors Economists (REAF) has influenced such opposition to discounts on coffee for all. Of those surveyed, 82.4% disagreed or strongly disagreed when asked whether this action was correct. He told the creature that “There is no assumption that the remedy is really effectiveWell, “it seems like it should have been directed some other way or found a way to reach the most affected groups.”

Broadly speaking, the problem is that this measure applies to any user, regardless of their income level, when fuel consumption increases significantly when income increases. On the other hand, the exemption is borne by all citizens, including those who do not refuel.

The Bank of Spain in its annual report has also put itself on this side of the debate. “The need to respond quickly to the most affected agents is covered through fuel price subsidies, but this is a very common measure, which can also be of a regressive nature, given that low-income households There is little consumption of these products,” the document states. The European Commission – which also believes this is incompatible with the climate emergency – and the IMF have criticized the use of generic measures.

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