Home News Government to continue to cut fuel tax relief Government to continue to cut fuel tax relief The government has said that it will continue to reduce the discount on the Tax on Petroleum and Energy Products (ISP), as requested by Brussels, on further fuel price cuts, as it did two weeks a
Government to continue to cut fuel tax relief
Monday, 15 December 2025RSS
Context & Explainers
Sustainability (sustentabilidade) means meeting present needs without reducing the ability of future generations to meet theirs, covering environmental, economic and social dimensions. For residents it affects local planning, jobs and services—look for municipal or company targets, timelines and measurable actions when assessing how sustainable a place or employer is.
The ISP (Imposto sobre Produtos Petrolíferos e Energéticos) is Portugal's excise tax on petroleum and energy products, charged as a fixed amount per liter on petrol, diesel, and other fuels. It is one of the main components of fuel prices at the pump, alongside VAT and the carbon tax (Taxa de Carbono).
The government can adjust ISP rates — temporarily or permanently — to influence fuel prices. Rate cuts are a common policy tool to ease cost-of-living pressures on drivers and transport businesses, though they also reduce government revenue.
For consumers, the ISP is significant because even small changes in the per-liter rate translate into noticeable differences at the pump, particularly for diesel users and commercial transport operators.
