Fuel prices are forecast to fall starting Monday, August 10, with diesel and petrol expected to drop below the 2-euro-per-litre mark. The Automobile Club of Portugal (Automóvel Club de Portugal or ACP) projects a decrease of approximately 12 cents per litre, though the government is tempering the final reduction by adjusting the tax relief on the Tax on Petroleum and Energy Products (Imposto sobre os Produtos Petrolíferos e Energéticos or ISP).
Fuel prices expected to drop below two euros
Sunday, 9 August 2026AI summary
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.
