The government has announced an increase in the temporary tax discount on the Petroleum Products Tax (Imposto sobre os Produtos Petrolíferos or ISP) for diesel and petrol. Starting next week, the discount will rise by 2.1 cents per litre for diesel and 1.4 cents for petrol to mitigate expected market price increases. The measure was confirmed via an ordinance published in the official gazette, Diário da República.
Government increases fuel tax relief to offset price hikes
Friday, 14 August 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.
The Official Journal (Diário da República) is Portugal's government gazette where laws, decrees and public contracts are formally published and take legal effect. Public‑private partnership approvals and other official notices — like the launch of the Central Algarve Hospital PPP — are published there so residents and businesses can find the authoritative text.
4 sources
- Government increases ISP tax relief for diesel and petroldinheirovivo.dn.pt ·
- Government increases ISP discount for diesel and petrolrtp.pt ·
- Fuel prices to rise again next weekcmjornal.pt ·
- Government increases ISP discount on diesel and petrol due to the prospect of price hikescnnportugal.iol.pt ·
