Daily Life: Cost of living news in Portugal

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.

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.

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.

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.

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.

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.

Minimum banking service accounts (Serviços Mínimos Bancários or SMB) reached a record 265,627 at the end of 2025, according to the Bank of Portugal (Banco de Portugal). These accounts cost approximately €5.37 per year and provide essential services like a debit card, home banking, and MB Way. Residents looking to reduce banking fees should note that existing current accounts (contas de depósito à ordem) can often be converted to this lower-cost format.

Diesel prices in Portugal are set to rise by about €0.19 and petrol by roughly €0.07 next Monday, prompting long queues at filling stations as motorists top up in advance. Consumer group DECO PROteste warned higher fuel costs will ripple through the economy, increasing transport and food prices, while analysts flag fertilizer supply pressures tied to Brent crude and tensions around the Strait of Hormuz. The price shock has also prompted political pushback, with some parties demanding an urgent parliamentary debate on relief measures. Drivers and shoppers should expect higher local transport and grocery costs in the coming weeks.

Update: Chega leader calls for VAT return, urgent debate

André Ventura, leader of Chega, challenged the government to “return to taxpayers” the extra VAT (IVA (Imposto sobre o Valor Acrescentado)) revenue generated by the coming fuel-price rise and said his party will ask for an urgent debate in the Assembleia da República next week; he also described the government’s 3.55‑cent ISP (Imposto sobre Produtos Petrolíferos or ISP) discount as insufficient.

Rui Miguel Nabeiro, CEO of Delta Cafés Group, told Lusa he expects 2026 to be 'much calmer' after a volatile 2025 and does not anticipate coffee price rises this year, citing efficiency measures. He pointed to geopolitical and climatic volatility in Vietnam and Brazil as causes of last year’s pressure. Consumers and cafés should expect stable retail pricing for now; hospitality businesses can factor this into cost forecasts.

Observador reports Alsa has introduced 53 new electric buses into the Porto Metropolitan Area fleet as part of a regional rollout. The move is intended to cut emissions and modernise public transport, with likely effects on schedules and fleet capacity as buses are phased in. Commuters should watch local operator notices for route or timetable changes during the rollout.

RTP reports the government will add a €0.10 charge to single-use packaging up to three litres from 10 April; the fee can be refunded if the container is returned to a participating collection point. The measure aims to incentivise returns and reduce waste; retailers and consumers should check which shops participate in the refund scheme and how returns are processed before 10 April. Shoppers should keep receipts and packaging if they plan to claim refunds.

CNN Portugal reports storm damage will squeeze household budgets but does not expect product shortages on shelves. The Confederation of Farmers of Portugal's secretary-general told reporters that the 'food basket' price has risen about 26% in recent years, and recent weather will add pressure to farmers' costs. Shoppers and household budgeters should expect higher prices for some fresh goods in coming weeks.

A Diário de Notícias press review reports consecutive rises in the cost of the food basket, which this week reached a four-year high. The coverage links the increases to recent bad weather that damaged crops and disrupted supply chains, and analysts expect upward pressure on grocery bills to continue in the near term. Households should expect higher supermarket costs and consider comparing prices or adjusting shopping habits.