Petrol and diesel prices on the Canary Islands today

Petrol and diesel prices in the Canary Islands

The Canary Islands are among the cheapest places to fill up within the European Union. Anyone travelling in Tenerife, Gran Canaria, Fuerteventura, Lanzarote, La Palma, La Gomera or El Hierro will generally pay significantly less at the petrol station than on the Spanish mainland or in Central Europe. The reason for this lies in a special tax exemption: the Canary Islands are not part of the EU VAT territory and, instead of Spanish VAT (IVA), levy the significantly lower special tax known as IGIC (Impuesto General Indirecto Canario). In addition, a reduced fuel duty rate applies on the islands, which noticeably lowers prices at the pump.

The following overview shows the daily average prices for petrol, diesel and other fuels on each of the Canary Islands. The data is updated regularly and provides a realistic overview of current price levels on each island.

Filling up cheaply in the Canary Islands: price differences between the islands

Although all the Canary Islands benefit from the same tax advantages, fuel prices vary – in some cases significantly – depending on the island. On the larger islands, such as Tenerife and Gran Canaria, a denser network of petrol stations and greater competition often result in lower prices. Smaller islands such as El Hierro or La Gomera sometimes have slightly higher prices due to their limited infrastructure and higher logistical costs involved in transporting fuel.

Anyone planning longer journeys, such as a round trip around Tenerife or a cross-island route on Gran Canaria, should keep an eye on current prices and, if necessary, fill up the tank before setting off. Prices can also vary by several cents per litre between different petrol stations on the same island, particularly when comparing motorway service stations with those in town centres.

What types of fuel are available in the Canary Islands

The following fuels are available at most petrol stations in the Canary Islands:

• Gasolina 95 (Eurosuper): The most widely available petrol, suitable for most cars with petrol engines
• Gasolina 98 (Super Plus): High-octane petrol for high-performance or older vehicles requiring a higher octane rating
• Gasóleo A (diesel): Standard diesel for cars, vans and commercial vehicles
• Gasóleo B (agricultural diesel): Subsidised diesel authorised exclusively for agricultural vehicles and not for general road use
• Autogas (LPG): Available at a few filling stations, but much less common than in other European regions

Taxes and pricing structure: Why fuel is cheaper in the Canary Islands

The main reason for the low prices is the so-called REF regime (Régimen Económico y Fiscal de Canarias), which grants the Canary Islands special economic and tax advantages as a special territory. Fuels on the islands are not subject to the full mineral oil tax applicable in mainland Spain, but to a separate tax system. Added to this is the aforementioned IGIC, which, with a basic rate of 7 per cent, is significantly lower than the Spanish VAT rate of 21 per cent.

These structural differences mean that travellers and residents of the Canary Islands save money every time they fill up, compared with what they would pay on the mainland. For frequent drivers and businesses with larger vehicle fleets, this difference adds up to a significant amount over the course of a year.

Practical advice on refuelling in the Canary Islands

Petrol stations are widespread across the larger islands and are usually open round the clock or, at the very least, equipped with self-service pumps that accept card payments. On smaller islands, it is advisable not to drive on empty, as the nearest petrol station may be further away than usual.

International credit cards such as Visa and Mastercard are accepted at almost all petrol stations. Cash is also accepted, though cash machines are often the only option outside opening hours. Some supermarket chains, such as Mercadona and HiperDino, operate their own petrol stations, which are often among the cheapest on their respective islands.

Good to know: Fuel prices and hire cars

Anyone hiring a car in the Canary Islands should pay close attention to the fuel agreement in the return contract. Many providers require the car to be returned with a full tank. If you fail to do so, you will often end up paying the provider’s significantly inflated refuelling charges. It is therefore worth refuelling the car yourself shortly before returning it and keeping an eye on current prices.

*Fuel prices shown are subject to change