French fuel purchases in Spain jump 22% in first month of VAT cut

The number of French drivers crossing into La Jonquera, a border town between France and Spain, to fill up their tanks rose by 22% in the first month after Spain lowered VAT on fuel. 

Officials say French customers were already the dominant group before the war in Iran pushed prices higher, but note that drivers are now coming from "farther away than Perpignan."

Even with the number of visitors increasing, gas stations saw a slight drop in the number of liters purchased per vehicle, reflecting the broader increase in crude oil prices. 

Cross-border drivers share the demand for France to introduce a similar tax cut.

At a gas station run by the Tramuntana Group in La Jonquera, lines of cars stretched throughout the morning. Nearly all had French license plates. 

While French drivers were already frequent customers before the Middle East conflict drove prices up, their numbers have grown significantly since Spain reduced fuel VAT.

Màrius Fàbrega, general manager of the Tramuntana Group, says customer traffic increased by 22% in just one month. The company has had to adjust supply orders to meet demand, as lower prices continue to attract drivers from across the border.

"This is a customer base that was already coming, but since the measure was implemented, we've noticed the increase," Fàbrega said. 

He added that fuel prices have remained "fairly stable" after the initial spike and confirmed there have been no supply issues despite ongoing geopolitical tensions.

Fàbrega noted that if Europe were to require Spain to restore a 21% VAT rate, it would narrow the price gap and reduce the incentive for French drivers to cross the border.

He also pointed to a 4% drop in average fuel volume per visit, as regular customers scale back purchases due to higher overall prices.

"It's worth the trip"

French drivers say the journey is still worthwhile and, for some, has become habit. This is the case for Serge Orengo, who points out the price differences of up to 50 or 60 cents per liter compared to stations just 15 minutes away on the French side.

Like others, he praised Spain's decision and called on the French government to act. "They have to do it. Everyone in France is asking for a cut, but the government doesn't want to. That's not normal," he said.

Said, a student from Céret, near Perpignan, studying logistics and transport, said filling up in La Jonquera costs her €66, around €20 less than at home, just 25 kilometers away. 

Another driver, Loupetis, who travels from Perpignan, said some people even make the trip from Toulouse, more than two and a half hours away, to fill approved containers. 

"In France, it's very expensive and taxes aren't going down," she said.