Spain agreed on Friday to a €5 billion ($5.8 billion) relief package to cushion the economic impact of the Iran war, including a cut in value-added tax (VAT) on petrol, diesel, natural gas and electricity from 21% to 10%.
Prime Minister Pedro Sánchez simultaneously announced a subsidy of 20 cents per litre on fuel for transport companies, farmers and fishing companies in a package of 80 separate measures including rent reductions.
While transport fuel rose in price to €1.71 for petrol and €1.84 for diesel in Spain on Friday, this remains lower than prices in Europe further north.
The measures were announced in two decrees that will go into force on publication in the government gazette on Saturday but still require parliamentary approval.
Approval is considered likely for the decree on tax relief. However, the second decree could face difficulties.
It includes, among other measures, a proposal from a left-wing coalition partner to extend expiring fixed-term rental contracts for low-income households and protections against eviction over unpaid electricity or gas bills.
The measures may encounter resistance from the conservative and right-wing populist opposition, raising doubts about their passage.