COMMISSION APPROVES STATE AID SCHEMES TO OFFSET HIGHER FUEL COSTS
The European Commission has approved new State aid schemes in Luxembourg and Italy to compensate transport operators for increased fuel costs resulting from the ongoing armed conflict around the Persian Gulf. The measures follow the temporary relaxation of EU State aid rules adopted by the Commission at the end of April in response to the economic repercussions of the conflict, known otherwise known as the Middle East Crisis Temporary State Aid Framework (METSAF).
For Luxembourg, the Commission approved a €54 million scheme supporting both road and rail transport operators. The measure will provide direct grants covering up to 70% of the additional costs incurred by eligible companies because of higher fuel prices between 01 March and 31 December 2026.
In Italy, the Commission approved a €300 million scheme for road hauliers. Support will be provided through tax credits covering up to 70% of additional fuel costs attributable to the crisis. The measure applies to fuel purchased between March and June 2026, with support available until the end of the year.
Luxembourg and Italy are not the first Member States to make use of the more flexible State aid framework to support the transport sector. Spain already introduced dedicated support schemes in June 2026, initially providing €402 million in direct grants to cover additional fuel costs incurred between 01 March and 30 June 2026. On 28 July 2026, the Commission approved an extension of the scheme until the end of August 2026 and an increase in its overall budget to €703 million. The level of support available to eligible companies was also adjusted to take account of Spain’s temporary reduction in the national hydrocarbon tax.
The measures demonstrate the scope available to Member States under the temporary State aid framework to safeguard transport operators against exceptional increases in energy costs. Spain’s decision to extend and substantially increase its support also illustrates how such measures can be adapted as the impact of the crisis persists. For the freight transport and logistics sector, where fuel remains a major operating cost, such support can help mitigate the immediate financial impact resulting from volatility in energy markets.