Canary Islands Extends Zero Fuel Tax Until End of September – What It Means for Lanzarote
Drivers in Lanzarote and across the Canary Islands will continue to benefit from a 0% IGIC (Canary Islands General Indirect Tax) on fuel after the regional government confirmed the measure has been extended until 30th September. The decision forms part of a wider package of measures designed to help households and businesses cope with ongoing uncertainty in global energy markets.
For both residents and visitors hiring a car during their holiday, the extension is welcome news. While fuel prices can still fluctuate depending on international oil markets, keeping the regional fuel tax at zero helps prevent motorists from paying even more at the pump.
Why has the measure been extended?
The Canary Islands Government says the move is intended to reduce the impact of continued volatility in global energy prices. Although fuel costs have eased compared with some of the highest levels seen in recent years, prices remain vulnerable to international events, and the government believes extending the tax relief offers additional protection for families, businesses and the tourism industry.
What does it mean for Lanzarote?
Lanzarote relies heavily on road transport, with residents commuting across the island and thousands of tourists hiring vehicles every week to explore attractions such as Timanfaya National Park, Papagayo Beaches and the villages of the north.
Lower taxation on fuel helps:
- Keep running costs down for local drivers.
- Support businesses that depend on transport.
- Reduce operating costs for some tourism-related services.
- Help visitors manage the cost of exploring the island by car.
It’s important to remember that a zero tax rate does not guarantee lower fuel prices, as pump prices are still influenced by wholesale oil prices, transport costs and competition between petrol stations. However, removing the tax helps limit additional increases.
Good news for holidaymakers
If you’re planning a holiday to Lanzarote over the summer, this extension means fuel taxation will remain at its reduced level throughout the busy tourist season and into early autumn. For many visitors hiring a car, it’s another positive factor that can help keep holiday transport costs more affordable.
With millions of visitors travelling to the Canary Islands each year, measures that ease the cost of everyday essentials are welcomed by both the tourism sector and local communities.
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