Latest news and stories about cost of living in environment in Portugal for expats and residents.
The Government could rethink the design of the ISP (petroleum product tax) within a framework of budgetary neutrality. It could, for example, direct a portion of the tax bonus to strengthen incentives for vehicle scrappage. Opinion by Ricardo Arroja.
The Middle East energy crisis and our short civilisational memory.
Europe has reduced its energy dependence on Russia following the invasion of Ukraine by diversifying gas suppliers, but experts warn it remains vulnerable to price shocks and geopolitical tensions affecting supply. While the shift to liquefied natural gas (LNG) has increased resilience, it has also exposed the continent to greater global market volatility and competition. Analysts offer mixed views on the effectiveness of this strategy, with some highlighting the operational risks of the new model, while others criticize the economic costs and the continued vulnerability to potential supply disruptions in the Middle East.
Experts believe that the rise in energy costs in Europe has also penalised several Asian economies.
The rise in energy costs in Europe following the war in Ukraine in 2022 penalised the continent's industrial competitiveness compared to the United States and Asian economies, experts say.
The US Department of Energy has launched the first auction as part of a gradual release of strategic oil reserves to mitigate the economic consequences of the war in the Middle East. The auction, aimed at oil companies, will cover 86 million barrels out of a total of 172 million to be released progressively. Under the terms of the agreement, companies must return the borrowed oil plus additional barrels. The goal is to strengthen strategic reserves and stabilise markets. US Energy Secretary Chris Wright stated that the delivery of the full 172 million barrels will take approximately 120 days. President Donald Trump, who has previously criticised the Biden administration's use of the reserve, expressed confidence that market fluctuations due to the conflict in Iran will be short-lived. Meanwhile, the International Energy Agency has decided to release 400 million barrels collectively, and Portuguese Prime Minister Luís Montenegro announced that Portugal will make 10% of its strategic reserves available. Despite these measures, Brent crude prices rose on Friday, closing above $103 per barrel amid tensions in the Strait of Hormuz.
With so much renewable energy, there are no reasons for potential increases in the electricity bill.
PCP Secretary-General Paulo Raimundo has challenged Prime Minister Montenegro to tax the record profits of major banking and energy corporations to fund war-related costs, urging a direct confrontation with big capital.
The article discusses how escalating conflicts in the Middle East threaten to increase oil prices, potentially costing European drivers an additional €150 million daily if oil prices surpass $100 per barrel. Europe's heavy dependence on imported fossil fuels makes it vulnerable to geopolitical tensions, leading to higher fuel costs and economic instability. Despite temporary measures like fuel subsidies, structural dependence remains, with significant financial support allocated to fossil fuel industries. The adoption of electric vehicles (EVs) is gradually reducing oil consumption, with EVs already saving drivers around €39 million daily. The article emphasizes that accelerating the transition to renewable energy and EVs could significantly decrease Europe's reliance on imported oil and mitigate future geopolitical and economic risks.
The article does not discuss Portugal; instead, it reports on the global energy crisis caused by a significant reduction in oil supply, primarily due to Iran blocking the Strait of Ormuz. This has led to a record-breaking 20% cut in worldwide oil supply, causing oil prices to surge past $100 per barrel and raising fears of reaching $200. Russia benefits financially from higher oil prices, while the US and Iran tensions threaten prolonged conflict and economic damage. Strategic oil reserves are insufficient to offset the supply disruption, and geopolitical tensions continue to escalate, impacting global markets.
The minister explains that in the event of a sharp increase, member states do not need to pass new legislation, as the European Parliament has already taken precautions against potential energy crises.
CMTV commentator discusses the increases that will have a major impact on the country, especially the rise in gas prices.
The Minister of Environment and Energy, Maria da Graça Carvalho, stated that if gas prices increase by approximately 70%, European member states can act to support consumers and businesses without the need for new legislation. She highlighted that existing EU regulations for energy crises allow for intervention, particularly to mitigate the impact on energy-intensive industries like glass and ceramics. The minister also noted that such an emergency declaration could help limit the influence of gas prices on electricity costs, while reaffirming Portugal's commitment to renewable energy as the primary path to energy independence.
The Minister of Environment and Energy, Maria da Graça Carvalho, stated that European mechanisms are in place to support consumers and businesses should gas prices increase by approximately 70%, without the need for new legislation. She highlighted the importance of gas for industrial sectors like glass and ceramics, noted that energy emergency declarations could allow for price intervention, and reaffirmed Portugal's commitment to renewable energy over nuclear power.
Environment Minister Maria da Graça Carvalho announced that fuel prices may decrease next week depending on Brent crude fluctuations, while highlighting government readiness to implement tax relief if prices surge significantly.
Eurogroup President Kyriakos Pierrakakis has warned that the eurozone must brace for a prolonged period of economic instability driven by geopolitical conflicts, rising energy costs, and persistent inflationary pressures.
G7 finance ministers, including Portugal's Joaquim Miranda Sarmento, decided not to release strategic oil reserves despite prices rising near $120 per barrel due to Middle East tensions. Sarmento warned that releasing limited reserves would only provide temporary relief and should be saved for actual emergency supply disruptions. Portugal currently maintains reserves covering approximately 90 days of consumption, which the government views as a vital buffer against total supply failure. Drivers and residents should be aware that fuel prices may remain volatile as international markets react to the closure of the Strait of Hormuz.
Update: Diesel prices see historic 20-cent daily surge
Fuel prices in Portugal experienced a significant jump this Monday, with diesel (gasóleo) increasing by 20 cents per litre, surpassing the price of petrol for the first time since 2022. While Brent crude prices fluctuated wildly, touching $119 before closing near $99, the immediate impact at Portuguese pumps reflects the high volatility in global energy markets.
Joaquim Miranda Sarmento is Portugal’s Finance Minister who gave a hearing before the Budget, Finance and Public Administration Committee about fiscal measures affecting housing. His remarks matter to expats because finance ministry decisions — like exemptions and public guarantees for young homebuyers — influence the property market, taxes and programmes that can affect housing affordability.
The association Zero has highlighted Portugal's excessive vulnerability to international oil market fluctuations, urging for enhanced electrification and strengthening of public transport to mitigate fossil fuel consumption and its economic impacts. They emphasize that this dependence contributes to inflation and economic competitiveness issues, particularly in light of rising fuel prices linked to geopolitical conflicts. Zero advocates for a structural reduction in oil reliance through improved public transport and vehicle electrification, rather than temporary tax relief measures. They also point out that the transport sector is a significant contributor to national greenhouse gas emissions, primarily relying on imported fossil fuels, and call for urgent action to address these challenges.
The military escalation in the Middle East, particularly the conflict in Iran, is exerting immediate pressure on global energy markets, leading to rising electricity prices in the Iberian Peninsula. Experts warn that the duration and severity of the conflict will significantly influence energy prices, with predictions of oil prices potentially reaching $90 to $100 if the situation persists. This escalation poses challenges for public finances in Portugal, as rising fuel and gas prices complicate economic stability.
The Energy Services Regulatory Authority (ERSE) has mandated that electricity and gas suppliers must allow affected customers to split their bills into manageable payments. This decision follows a consultation process and aims to alleviate financial pressure on those impacted by Storm Kristin. Suppliers are required to issue a credit note before sending a second bill to customers who opt for this payment plan.
Weather phenomena do not conclude with the receding of water; their impacts persist in the lives of individuals, exacerbating existing inequalities.
A series of storms has wreaked havoc across Portugal, leading to extensive damage to infrastructure and impacting local communities. The severe weather has prompted emergency services to respond to the crisis, highlighting concerns over public safety and the resilience of affected areas.
The hospitality sector is entering 2025 with ‘extremely depressed’ margins and a wave of largely unseen or ‘silent’ closures, the industry association warns. Rising input costs and liabilities from the Covid bill have eroded profitability despite a package of government support, and the sector expects more than a thousand closures next year. The closures are hard to spot individually but carry a structural impact on local economies, employment and supply chains. Industry representatives say short-term relief has helped but longer-term, targeted measures are needed to stabilise margins and prevent further structural damage.
Presidential candidate André Pestana said Portugal should prioritise domestic social and environmental needs rather than increased defence spending, declaring he does not want “a single euro more for NATO”. He argues the fight should be against low wages and pensions, environmental degradation and the deterioration of public services, and proposes that funds currently transferred to private health providers be redirected into the National Health Service (SNS), claiming a large share of the state health budget is going to private companies.
