The Portuguese government has announced an “extraordinary and temporary” tax reduction of 3.55 cents per liter on fuel, aimed at mitigating the impact of rising fuel prices driven by increased global oil prices amid the conflict in the Middle East. The recent surge in oil prices, with Brent crude surpassing $87 and potentially reaching $120, has led to record-high fuel costs in Portugal, with gasoline reaching over 2 euros per liter in some stations. Despite the tax cut, fuel prices remain high, and in Galicia, some stations are among the most expensive in Spain. The measure seeks to offset the additional VAT revenue from rising prices and provide relief to consumers during this period of geopolitical instability.