Struggling petrol stations in Costa Blanca and Valencia areas of Spain get interest-free loans to survive fuel price cuts

INDEPENDENT and mainly family-run service station businesses in the Valencian Community have been offered an interest-free loan to help them survive.

Pump price cuts of 20 cents a litre were introduced on April 1, with 15 cents being paid for by the national government.

The issue is that the price drop will not be refunded to retailers by Madrid until mid-May at the earliest.

That according to the Mediterranean Federation of Service Stations means a small business may on average have to find €60,000 until they get the refund.

Federation representatives met with Valencian president, Ximo Puig, on Monday.

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XIMO PUIG(Generalitat Valenciana image)

Their members have been offered an interest-free bridging loan from Valencia coffers until the government speeds up reimbursements.

Puig described the price cut as a ‘good decision’ but warned that it cannot have a negative impact on petrol retailers.

“I call on the Finance Ministry to seek solutions and simplify procedures,” said Puig.

Around 800 service station operators are believed to be in trouble in the Valencia region because of the government shortfall- something that’s not a problem for the big national and international oil companies who run forecourts.

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