Fuel prices set to rise significantly next week

Saturday, 2 May 2026AI summary

💶 Finance 🏖️ Daily Life #cost-of-living #fuel-prices

Fuel prices set to rise significantly next week — Photo: CNN Portugal

Drivers in Portugal will face higher costs at the pump starting Monday, with diesel prices expected to increase by up to 9.5 cents and petrol by 6 cents per litre. According to the Automobile Club of Portugal (Automóvel Club de Portugal or ACP), the average price for diesel could reach 2.05 euros per litre, while petrol may average 1.99 euros. These forecasts account for recent adjustments to the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP).

Update: Government increases fuel tax discount to mitigate price hikes

In response to the expected price surge, the government has further increased the discount on the ISP. The subsidy for diesel will rise by an additional 1.5 cents, while the petrol subsidy increases by 0.6 cents.

Context & Explainers

ACP is the Automóvel Club de Portugal (Automobile Club of Portugal). It is a Portuguese motoring association that publishes fuel-price data and weekly forecasts used by motorists, media and retailers to anticipate petrol and diesel price changes when budgeting for trips or refuelling.

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.