Fuel prices hit record highs amid consumption increase

Monday, 21 September 2026AI summary

💶 Finance 🏛️ Government #cost-of-living #regulation #economic-activity

Fuel prices hit record highs amid consumption increase — Photo: cmjornal.pt

Diesel prices have reached a record average of 2.267 euros per litre, prompting the Minister of Environment and Energy, Maria da Graça Carvalho, to urge citizens to reduce energy consumption. Despite these historic costs, national fuel usage has continued to rise. The political opposition, including the Liberal Initiative (Iniciativa Liberal or IL), is now pressuring the government to fulfill a parliamentary recommendation to lower the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP).

Context & Explainers

Leader: Mariana Leitão (since July 2025)
Ideology: Classical liberalism, economic libertarianism

Founded in 2017, the Liberal Initiative advocates for reduced state intervention, tax simplification, labor market liberalization, and secular liberalism under the motto "Less State, More Freedom". The party gained its first parliamentary seat in 2019 and now holds 9 seats. Mariana Leitão, 42, became the party's first female leader in July 2025 after Rui Rocha resigned following disappointing 2025 election results. Leitão previously served as parliamentary leader and has been announced as the party's candidate for the 2026 presidential election. The party explicitly rejects alliances with both far-left and far-right parties, positioning itself as the "only alternative" that won't negotiate with extremes.

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.