The average annual salary in Portugal reached 24,800 euros in 2024, a 7% increase from the previous year. Despite this growth, the Business Roundtable Portugal association reports that Portuguese earnings remain 38% lower than the European Union average of 39,800 euros.

A new World Bank report projects that energy prices will increase by 23.6% in 2026 due to ongoing conflict in the Middle East. This rise is expected to be the highest since the start of the war in Ukraine, with significant impacts also anticipated for fertilizer and metal costs.

The Bank of Portugal (Banco de Portugal or BdP) is advising customers to contact their banks if they face difficulties resuming home loan payments. The moratorium, which allowed for a temporary suspension of payments for families affected by severe weather, officially ends on April 28.

Fuel prices will shift starting next week, with petrol expected to rise by 2.5 to 3.5 cents per litre. Conversely, diesel prices are set to decrease, with estimates ranging from a 0.9-cent drop to a 4-cent reduction according to the Automóvel Club de Portugal (Automóvel Club de Portugal or ACP). These fluctuations reflect market trends and recent government adjustments to fuel discounts.

Electricity prices in the Iberian market are expected to remain stable due to the integration of renewable energy sources, particularly hydroelectric power. Pedro Amaral Jorge, president of the Iberian Electricity Market (Mercado Ibérico de Eletricidade or MIBEL), stated that the focus is on increasing price predictability for consumers. He also argued against taxing extraordinary corporate profits.

Fuel prices will fluctuate starting Monday, April 27, with diesel expected to decrease by 3.2 cents per litre following a government tax discount adjustment. Petrol prices are forecast to rise by 2.5 cents per litre. These figures are estimates from the Automobile Club of Portugal (Automóvel Club de Portugal or ACP) and may vary by location and gas station.

Update: Government reduces diesel tax discount

The government has officially decided to reduce the planned tax discount on diesel. Consequently, the price per litre will drop by 3.2 cents instead of the originally anticipated four-cent decrease. The tax discount for petrol remains unchanged, confirming the expected 2.5-cent increase per litre.

Municipalities affected by recent severe weather have requested that the government extend economic and employment support measures for an additional 60 days. A formal request has been sent to the Minister of Finance to keep these protections in place until the end of June.

The trade union federation CGTP is demanding urgent government intervention to control the prices of essential goods and fuel. The union reports that the cost of living has risen significantly, placing a heavy burden on workers and pensioners.

The cost of an essential food basket containing 63 products has reached a new record of 260.89 euros, according to the consumer protection organization Deco Proteste. This marks the seventh consecutive week of price increases, with the basket becoming 1.37 euros more expensive than the previous week. The current price is the highest recorded since the organization began monitoring these costs in January 2022.

The state-owned company Infraestruturas de Portugal (Infraestruturas de Portugal or IP) recorded a net profit of 135 million euros in 2025, the highest value since its creation in 2015. This 8.8% increase occurred despite a reduction in toll revenue following the end of certain toll-free road schemes (SCUT). Meanwhile, the government has selected Paulo Carmona, the current director-general of the Directorate-General for Energy and Geology (Direção-Geral de Energia e Geologia or DGEG), to serve as the next president of the company.

Portugal's year-on-year inflation reached 2.7% in March 2026, up from 2.1% in February, primarily driven by a 5.8% surge in energy prices. This spike, linked to geopolitical tensions in the Middle East, accounts for over half of the total inflation increase. While the broader Eurozone labour market is expected to remain resilient, the rising cost of living remains a significant concern for the national economy.

The government is reducing the extraordinary tax discount on diesel by 1.5 cents per liter, while maintaining the current discount for unleaded petrol. This adjustment, published in the Diário da República, follows an expected significant decrease in diesel prices for the coming week. The move aims to balance fuel costs for consumers while managing the temporary tax relief measures.

The latest DN/Aximage Barometer shows the Socialist Party (Partido Socialista or PS) leading voting intentions at 30.6%, followed by the PSD-CDS coalition and Chega. The poll highlights growing public dissatisfaction with the government, which received a 54% negative rating. Meanwhile, the Left Bloc (Bloco de Esquerda or BE) has criticized the Social Democratic Party (Partido Social Democrata or PSD) for supporting Chega candidates for parliamentary oversight bodies.

The Portuguese Association of Insurers (APS) announced that insurance companies have paid 359 million euros in compensation for damages caused by severe storms in January and February. Total covered damages are projected to reach 1.086 billion euros, with over 100,000 claims already processed or partially settled. The storms caused significant destruction across the central zone of the country.

The Viseu City Council has unanimously approved a measure to make public transport free for all residents. The initiative, which fulfills an election promise by João Azevedo, will cost approximately one million euros and aims to support local families while addressing environmental goals. The service is expected to become free in the coming weeks following final regulatory reviews.

The cost of an essential basket of 63 products has reached a new record of 259.52 euros, according to data from the consumer protection organization Deco PROteste. This marks the sixth consecutive week of price increases, driven largely by rising energy costs.

Global oil prices have climbed above 100 dollars per barrel following a US-led blockade of the Strait of Hormuz. The move, announced by Donald Trump, aims to restrict Iranian oil revenues amid collapsing diplomatic negotiations. The situation has triggered significant market uncertainty and increased costs for energy and consumer goods in Portugal.

The cost of an essential basket of 63 food products, monitored by the consumer protection association Deco Proteste, has reached a record high of 257.95 euros. This represents an increase of 2.95 euros in just one week, with prices for items like pasta showing significant spikes. The current cost is 37.42% higher than it was four years ago.

The government has approved a temporary amendment to the Petroleum Products Tax (Imposto sobre Produtos Petrolíferos or ISP) regime. This measure aims to maintain fiscal relief on fuel prices, which have been rising due to the ongoing conflict in the Middle East.

João Almeida Lopes, president of the Portuguese Association of the Pharmaceutical Industry (Associação Portuguesa da Indústria Farmacêutica or APIFARMA), warned that medicine prices may soon increase. He cited rising costs for transport and raw materials, alongside international economic pressures, as primary drivers for the potential adjustments.

Pedro Costa, a commentator for CNN Portugal, believes that the request from five European Union countries, which want a tax on the extraordinary profits of energy companies, “makes perfect sense.”

Fuel prices are scheduled to rise again this coming Monday across Portugal. Diesel is expected to increase by seven to eight cents per litre, while petrol will see a rise of 2.5 cents per litre.

Finance Minister Joaquim Miranda Sarmento has joined counterparts from Germany, Italy, Spain, and Austria in a formal request to the European Commission for a new tax on extraordinary profits of energy companies. The ministers argue this measure would ensure unity and address the impact of rising fuel prices linked to the ongoing conflict in the Middle East. The proposal mirrors similar European regulations implemented during the 2022 energy crisis.

Update: Portugal joins five-nation push for energy windfall tax

Finance ministers from Portugal, Germany, Italy, Spain, and Austria sent a formal letter to European Commissioner for Climate Action Wopke Hoekstra on April 3. The group argues that energy companies benefiting from market volatility caused by the conflict in Iran should contribute to easing the financial burden on the public.

Fuel prices in Portugal are set to increase again on Monday, with diesel expected to rise by up to nine cents per litre and petrol by up to four cents. Despite the government applying a new discount to the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP), international market volatility continues to drive costs higher. This marks the fifth consecutive week of rising prices linked to the ongoing conflict in the Middle East.

Fuel prices will rise again on Monday, with diesel increasing by eight cents per litre and petrol by three and a half cents. The increase in diesel will thus exceed 50 cents since the war began, and a 50-litre tank will cost, on average, €26 more than it did a month ago.

Fuel prices in mainland Portugal are expected to increase next week due to rising international oil costs. To mitigate the impact, the government will maintain temporary discounts on the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP) for road diesel and unleaded petrol.

Global food prices increased by 2.4% in March, marking the second consecutive month of growth according to the Food and Agriculture Organization (Organização para a Alimentação e a Agricultura or FAO). The rise is primarily attributed to higher energy costs linked to the ongoing conflict in the Middle East. While cereal prices rose by 1.5%, rice prices saw a 3% decline.

A delegation from the European Parliament's housing committee described Portugal’s housing situation as severe following a two-day visit to Lisbon. Committee president Irene Tinagli highlighted an alarming percentage of properties used for tourism and a growing gap between market prices and local wages. The group called for a better balance between the tourism industry and the need for affordable housing for residents.

The use of generic medicines (medicamentos genéricos) in local pharmacies saved the state and households over 666 million euros last year. Although this represents a slight decrease from 2024, the National Association of Pharmacies (Associação Nacional das Farmácias or ANF) noted that generics have saved billions since 2011. The pharmaceutical sector expressed concern that rising diesel prices could impact future distribution costs.

Homeowners with variable-rate mortgages will see monthly payments increase by up to 18 euros this month as Euribor rates react to geopolitical tensions. Data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows inflation rose to 2.7% in March, largely driven by higher fuel costs. These market shifts are affecting both existing contracts and new loans, including those with mixed-rate options.

A study by the Institute of Public and Social Policies (Instituto de Políticas Públicas e Sociais) found that housing is the least protected right among those established in the 1976 Constitution (Constituição). While 42% of citizens believe the document reflects national aspirations, many feel the right to decent housing (habitação condigna) remains unfulfilled. The report marks 50 years since the publication of the constitutional text.

Consumer confidence in Portugal has dropped to its lowest level since December 2023 as the conflict in the Middle East fuels fears of rising prices. Data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows a sharp decline in economic sentiment across the retail and construction sectors. European Central Bank (Banco Central Europeu) President Christine Lagarde warned that the global energy shock resulting from the crisis is currently being underestimated.

A study by the University of Minho reveals that 72% of mayors (autarcas) believe central government funding is insufficient to cover the costs of non-teaching school staff. The research also found that 64% of municipalities face a deficit of at least 20% for school meals (apoio alimentar). The Minister of Territorial Cohesion acknowledged the shortfall and suggested a revision of the local finance law (Lei das Finanças Locais) to address the imbalance.

Fuel costs in Portugal have risen sharply since the start of the conflict in the Middle East, with diesel prices increasing by 30% and petrol by 14%. A 50-litre tank of diesel now costs approximately 104 euros, up from 80 euros just over a month ago. While the government has extended some tax relief measures, the Bank of Portugal (Banco de Portugal) warns that rising energy costs continue to contribute to economic instability.\n\nUpdate: Diesel prices exceed two euros as sector groups demand support\n\nDiesel prices have risen to 2.232 euros per litre, while petrol prices saw a slight decrease to 1.976 euros. The National Confederation of Agricultural Cooperatives (Confagri) and the National Association of Public Road Freight Carriers (ANTRAM) have both criticized recent government support measures as insufficient to offset rising production costs. Retailers also warned of a significant price increase for gas cylinders (garrafas de gás) starting this Wednesday.

Students from Portuguese-speaking African countries (Países Africanos de Língua Oficial Portuguesa or PALOP) are reporting significant hardships due to visa delays and high living costs in Portugal. Many students arrive months after the academic year begins, which severely impacts their mental health and academic performance. The delays are described as a systemic barrier for international students entering through special quotas.

The National Association of Fuel Retailers (Associação Nacional de Revendedores de Combustíveis) expects a slight drop in diesel and petrol prices starting Monday. However, the ongoing conflict in the Middle East has caused Brent oil prices to fluctuate, making final costs at the pump difficult to predict. Some analysts are calling for a reduction in the 23% VAT (IVA) on fuel to provide relief to households facing high living costs. Drivers should check local station prices early next week for potential savings.

Update: Government approves €150 million monthly fuel support package

The government approved a 10-cent-per-liter subsidy for exposed sectors including taxis, agriculture, firefighters, and freight transport. Prime Minister Luís Montenegro rejected calls for a VAT reduction on fuel or food, stating the country must maintain its status of financial stability. Those in the transport and agricultural sectors should note the support is estimated to cost €150 million per month.

The Bank of Portugal (Banco de Portugal) has revised its 2026 economic growth forecast downward, citing geopolitical instability and recent extreme weather events. While the labor market remains stable, employment growth is expected to slow throughout 2025 due to tighter immigration rules and lower economic growth. Consumers should also prepare for higher costs in the food basket (cabaz alimentar) starting in April as Middle East tensions impact global supply chains.

Update: Portugal records 0.7% budget surplus for 2025

The National Statistics Institute (Instituto Nacional de Estatística or INE) confirmed that Portugal ended 2025 with a budget surplus (excedente orçamental) of 0.7% of GDP, significantly higher than the government's 0.3% forecast. Finance Minister Joaquim Miranda Sarmento stated the result provides important financial security, though opposition parties argue the surplus was achieved at the expense of public services. Taxpayers should be aware that this fiscal performance may influence future government spending on infrastructure and social support.

A new study from the Bank of Portugal (Banco de Portugal) shows that median-income families now face a housing effort rate (taxa de esforço) of 48%, well above the recommended 40% limit. In response to housing and competitiveness challenges, the government is reallocating 2.5 billion euros from the Portugal 2030 (Portugal 2030) EU funding framework. Those seeking housing should note that mortgage payments in some municipalities have nearly doubled over the last four years.

Update: Bank of Portugal reports 140% house price rise since 2016

The Bank of Portugal reports that housing prices have surged by 140% between 2016 and 2025, with bank valuations reaching a new record of 2,122 euros per square meter in February. In response to the crisis, the Lisbon City Council (Câmara Municipal de Lisboa) has approved a 128 million euro investment to renovate housing and public infrastructure through municipal agencies. Lisbon residents should note that this funding targets both affordable rentals and local schools.

The government announced it may adjust its response to rising prices if geopolitical tensions in the Middle East continue to impact the cost of living. As an immediate measure, the Ministry of Agriculture plans to reduce the price of agricultural diesel (gasóleo agrícola) by 10 cents per liter whenever price hikes exceed that amount. Residents should monitor upcoming Council of Ministers (Conselho de Ministros) decisions for further measures targeting food and energy costs.