The government has updated the discount on the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP), setting the rate at 28.5 cents per liter for diesel and 45.6 cents for petrol starting Monday. Despite the adjustment, diesel costs have risen significantly due to international tensions, with a full tank now costing roughly €23 more than before the Middle East conflict. Drivers should expect simple diesel (gasóleo simples) to exceed €2 per liter at many stations.
Fuel tax discounts updated as diesel prices continue to climb
Friday, 20 March 2026AI summary
Context & Explainers
The ISP is Portugal's excise tax on fuels — the Tax on Petroleum and Energy Products (Imposto sobre Produtos Petrolíferos e Energéticos) — charged as a unit rate per litre on petrol, diesel and other fuels. The government sets and can temporarily cut those unit rates; a recent decision to reduce the rate for road diesel on the mainland aims to lower pump prices and reduce transport costs for drivers and businesses, though it also lowers tax revenue.
