Fuel prices in Portugal are set to decrease next week, with diesel expected to fall by approximately 11 cents per litre and petrol by five cents. The government has announced a slight reduction in the discount on the petroleum products tax (Imposto sobre os Produtos Petrolíferos or ISP), which will mitigate the total price drop at the pump. Market experts note that these price trends remain dependent on the stability of international tanker traffic.
Fuel prices expected to drop significantly next week
Friday, 19 June 2026AI summary
Context & Explainers
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.
5 sources
- Fuel prices heading for second largest drop in three monthspublico.pt ·
- Diesel to drop 11 cents and petrol five cents next weekdinheirovivo.dn.pt ·
- There is an 'improvement' in fuel prices. But the drop will only be maintained 'if tanker traffic normalises'cnnportugal.iol.pt ·
- Government reduces ISP discount on diesel and petrolcmjornal.pt ·
- Government reduces ISP discount and mitigates price drops for diesel and petroleco.sapo.pt ·
