The increase in gasoline prices in Gibraltar puts an end to the queues of cars at the Rock's fuel pumps

The lines of cars with Spanish license plates at the gas stations in Gibraltar, refueling to take advantage of lower prices in the British colony, have been a constant for years. Almost since the Border was opened to vehicle traffic in 1985. But the situation has just taken a turn.

Gasoline and diesel prices in Gibraltar have experienced a significant increase since the beginning of the year, to the point where prices are now higher than those at the low-cost gas stations in La Línea and San Roque. It is no longer cost-effective to enter to fill up, and the most immediate consequence has been the disappearance of Spanish cars at the pumps.

This situation occurred after the conclusion of the discount implemented by the Gibraltar government in April 2022 to mitigate the effects of the general rise in prices in the context of the war in Ukraine. In Gibraltar, the discount passed on to end-users came from a reduction in the import duties on these products, which ended with the change of the year.

In practical terms, the discount on diesel was 15 pence, while for 95-octane gasoline, it was 25 pence.

With the bonus ending (benefiting drivers on both sides of the Border without distinction), the real product price has emerged. Gibraltar's gas stations do not have market capacity to compete with low-cost pumps, which apply lower prices due to the volume of purchases for a larger network distributed throughout the country.

This week, it is possible to refuel diesel in La Línea at 1.339 euros and at 1.315 euros in Campamento (San Roque), while at two gas stations in Gibraltar, prices are at 1.512 and 1.516 euros, as verified by Europa Sur.

The same applies to 95-octane gasoline, as prices in La Línea and Campamento are 1.455 and 1.425 euros, respectively, compared to 1.479 and 1.481 euros in Gibraltar.

The Gibraltar government has emphasized that the discount was applied for a longer period than initially planned "to alleviate the increase in the cost of living in other consumer products" and, in particular, the rise in fuel costs.

Despite the increase, the Gibraltar government has noted that local suppliers have increased prices, albeit to a lesser extent than the discontinued discount, so local suppliers have absorbed part of the cost increase.

Fuel prices on the Rock rise as import duty discount comes to an end

Published by GBC News

Fuel prices on the Rock have risen now an import duty discount introduced by Government has come to an end.

The discount had been in place for just under two years. Prices on the Rock are pretty close to those in Spain at present, as a result.

​Fuel prices on the Rock rise as import duty discount comes to an end

​Fuel prices on the Rock rise as import duty discount comes to an end

In April 2022 the Government introduced a 15 pence discount on import duty for every litre of fuel.

This followed a substantial rise in the cost of petrol following the war in Ukraine and the cost of living. Similar measures were introduced around Europe and the savings were passed on to customers.

The discount ended on the 31st December last year. As a result, the start of 2024 has seen fuel costs locally climb.

In response to a request for comment, the Government has told GBC that the subsidy was actually in place for longer than expected and that it is keeping it under review.

According to representatives in the industry, an average 30 litre tank would now expect to see an increase of around £7.50 when filling up fully.

GBC also understands the price rise has resulted in Gibraltar fuel prices being on par with some in Spain. However, representatives say it is too soon to tell what kind of impact this would have on business just yet.


In a further comment on Friday afternoon, the Government said Spain removed the discounted rate on fuel in December 2022, while in Gibraltar it remained in place until the end of 2023.

Number Six says while local suppliers have increased prices, "these are, to a very large extent, still cheaper than the major suppliers in Spain".

It adds the local increase in prices is less than the previous discount of 20 pence, meaning local suppliers have absorbed some of the cost increased by the removal of the subsidy.

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