Canary Islands extends zero energy IGIC until December 31

The Government of the Canary Islands has extended until December 31, 2026, the zero rate of the IGIC (Canary Islands General Indirect Tax) applicable to certain energy products and the extraordinary refund of the IECDP (Special Tax on Certain Petroleum Products) to farmers and transporters. The measure is detailed in Decree-law 6/2026, of September 28, published in the Official Gazette of the Canary Islands no. 196, of September 30, 2026, and comes into force on October 1, the exact day the current measures expired.

The decree, approved via the urgency procedure under article 46.1 of the Statute of Autonomy of the Canary Islands, is structured into two articles and a single final provision. It provides continuity to decree-laws 3/2026, of April 6, and 4/2026, of June 29, which articulated the Canarian tax measures in response to the crisis in the Middle East, complementing Royal Decree-law 7/2026, of March 20, approved by the State.

The Executive justifies the extension based on the persistence of geopolitical uncertainty, the volatility of international energy and raw material markets, and tensions in supply chains. To this, it adds the status of the Canary Islands as an outermost region, recognized in article 349 of the Treaty on the Functioning of the European Union. The regulation emphasizes that it does not establish a permanent tax regime: it is limited to the months of October, November, and December 2026.

Zero IGIC rate for energy products

Article 1 maintains, effective from the date of entry into force until December 31, 2026, the zero rate on the delivery or import of:

Petroleum and petroleum refining products, including those mixed with biofuels.
Gas.
Briquettes and “pellets” derived from biomass.
Firewood.

Safeguard clause linked to the CPI

The extension is not unconditional: the text conditions its continuity on the evolution of fuel prices.

If in September the variation in the Canary Islands of the CPI for gasoline and diesel does not exceed the CPI of the same month of the previous year by more than 15 percent, according to the data published in October by the National Statistics Institute, the reduction will cease to apply in November.
If this same comparison is not exceeded in October, based on the information published in November, the zero rate will cease to apply in December.

Extraordinary refund of the IECDP

Article 2 extends the extraordinary increase in the partial refund of the IECDP corresponding to professional diesel and gasoline, regulated in article 12 bis.3 of Law 5/1986, of July 28. The applicable rates are:

Until October 31, 2026: 0.2649735 euros per 1,000 liters of professional gasoline and 0.2219778 euros per 1,000 liters of professional diesel.
If the September CPI exceeds the 15 percent threshold: from November 1 to 30, 29.15 euros and 24.42 euros per 1,000 liters, respectively.
If the October CPI exceeds that threshold: from December 1 to 31, 55.65 euros and 46.62 euros per 1,000 liters.

The decree is signed by the acting President of the Government, the Vice President Manuel Domínguez González (Decree 96/2026, of September 25), and the Minister of Finance and Relations with the European Union, Matilde Pastora Asián González.

The extension comes with the endorsement of the Constitutional Court’s doctrine on decree-laws regarding tax matters, cited in the statement of reasons, and prevents the withdrawal of the measures from occurring abruptly. For Canarian households, businesses, farmers, and transporters, the immediate effect is that the energy bill for the last quarter of the year will not include the fiscal jump that would have been caused by the return to the general IGIC rate and the ordinary refund of the IECDP as of October 1.

Source: Official Gazette of the Canary Islands, no. 196, September 30, 2026, section I. General provisions, page 35651 (official reference: boc-a-2026-196-3375).