Expatica news

Petrol prices to go up to pay for health

13 May 2004

BARCELONA – The regional government in Catalonia is to raise the price of petrol and diesel by 2.4 cents per litre to pay for its health service, political sources said Thursday.

The Generalitat wants to increase prices from 1 August in the north-east Spanish province to raise EUR 65-80 million by the end of the year.

The regional government’s economics minister has decided to apply a tax on hydro-carbons, which are in petrol and diesel oil.

It will be part of a series of measures brought in by the regional government this month which include a tax of 0.6 centimes per litre for diesel.

But the surcharge, which already exists in Madrid, Galicia and Asturias, is part of a system of regional taxes which started in 2002.

The maximum surcharge can be 2.4 cents.

The Spanish government has already approved a separate surcharge of 2.4 cents per litre on petrol or diesel oil.

The measure met with protests in Catalonia with transport workers threatening to stage demonstrations against the tax hike.

[Copyright EFE with Expatica]

Subject: Spanish news