Spain is set to remove the controversial temporary speed limit on motorways which was introduced to cut fuel consumption because of rising fuel prices.
The limit was cut to 110km/h (68mph) in March drawing protests from motorists including Spain’s double world champion Formula 1 driver Fernando Alonso.
The government says petrol prices have now fallen and, from 1 July, motorists can again drive at 120km/h (75mph).
Oil prices spiked after uprisings in Libya and elsewhere in the Arab world. Spain is heavily dependent on imported fuel and 13% of its oil usually comes from Libya.
“The circumstances have changed so we understand the measure is no longer required and we are going back to 120 km/h,” Deputy Prime Minister Alfredo Perez Rubalcaba said after a weekly cabinet meeting.
He acknowledged that the slower speed limit had provoked “strong debate” but said it had saved Spain 450m euros (£399m) in its balance of payments.
Many Spaniards believed the change was a ruse to raise funds through more speeding fines.