Hydrocarbon Tax in August 2026: New Tax Rates and Fiscal Measures

New reduced Hydrocarbon Tax rates from August 2026

The new reduced rates of Hydrocarbon Tax provided for in Royal Decree-Law 18/2026 will enter into force on 1 August 2026. This measure forms part of the extraordinary package approved by the Government to address the economic impact of the crisis in the Middle East and the volatility of energy markets. The Tax Agency has already published the rates applicable during this new period.

The regulation maintains the progressive tax reduction schedule that began in July. Following a reduction equivalent to 15 cents per litre during that month, the reduction will generally fall to 10 cents per litre in August, while a reduction of 5 cents per litre is planned for September. However, the Royal Decree-Law itself includes an automatic review mechanism that allows these reductions to be intensified if the evolution of the CPI for petrol and diesel exceeds certain thresholds, thereby preventing a new rise in energy prices from being fully passed on to businesses and consumers.

These measures have a particularly significant impact on companies whose activity depends on intensive fuel consumption, including those engaged in freight and passenger transport, the agricultural sector, energy operators and fuel distributors. The Royal Decree-Law also maintains specific support for professional transport and agricultural diesel through existing aid and tax refund mechanisms.

Royal Decree-Law 18/2026 is not limited to Hydrocarbon Tax. It also introduces other energy tax measures, including the reduction of instalment payments of the Tax on the Value of Electricity Production, IVPEE, during the third and fourth quarters of 2026 and the planned reduced rate of 3.5% in 2027, with its elimination from 2028. In addition, the regulation includes measures related to electricity VAT and the Special Tax on Electricity, as well as automatic adjustment mechanisms if the energy situation worsens.

From a practical perspective, companies should review the impact of these new rates on their fuel costs, check that their billing systems correctly apply the rates in force from 1 August and update their financial forecasts for the third quarter. It is also advisable to monitor the publications of the Tax Agency, as the intensity of the reductions may vary depending on the evolution of the CPI for fuels and the reviews provided for in the regulation itself.

In short, August marks a new stage in the gradual withdrawal of the extraordinary tax measures approved to address the increase in energy costs. Although the reduction in Hydrocarbon Tax is lower than the one applied in July, the Royal Decree-Law maintains a flexible framework that allows fiscal support to be reinforced if economic circumstances deteriorate again, providing greater certainty to the sectors most exposed to energy prices.