Spain has announced a temporary elimination of the sales tax on olive oil in response to the significant price increases that have impacted consumers. As the world's leading producer and exporter of olive oil, Spain has been facing challenges due to global inflationary pressures and a prolonged drought that has severely affected supplies. This surge in prices has also been observed in other Mediterranean countries.
According to Spain's agriculture ministry, the price of olive oil has surged by a staggering 272% since September 2020. This has resulted in a five-liter bottle of olive oil costing over 50 euros ($53) at Spanish supermarkets. Olive oil holds a significant place in Spanish cuisine, being used for cooking as well as garnishing various dishes such as sandwiches, salads, and vegetables.
