Finance: Fuel prices news in Portugal

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.

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 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.

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 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.

Drivers in Portugal will face a significant increase at the pumps this Monday, with diesel prices expected to rise by 12 cents per liter and petrol by seven cents. The Automobile Club of Portugal (Automóvel Clube de Portugal or ACP) has criticized the government's tax relief measures as insufficient to offset the global price surge. Travelers should note that the state continues to collect substantial revenue through the fuel tax (Imposto sobre os Produtos Petrolíferos or ISP) despite the current crisis.

The government has updated the discount on the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP), setting the rate at 28.5 cents per liter for diesel and 45.6 cents for petrol starting Monday. Despite the adjustment, diesel costs have risen significantly due to international tensions, with a full tank now costing roughly €23 more than before the Middle East conflict. Drivers should expect simple diesel (gasóleo simples) to exceed €2 per liter at many stations.

Prime Minister Luís Montenegro has promised to use regulatory power to prevent fuel price speculation as costs at some stations again exceed two euros per liter. Energy Minister Maria da Graça Carvalho stated that while the market is tense, Portugal has not yet reached an 'energy emergency' that would trigger more drastic measures. Drivers should note that the government plans to release 10% of strategic oil reserves to help stabilize the market, though taxi federations are already requesting extraordinary support.

Minister of Environment and Energy Maria da Graça Carvalho stated that fuel prices (preços dos combustíveis) could decrease next week if international Brent crude prices remain low through Friday. The government is monitoring the impact of the Middle East conflict on energy costs and is prepared to offer tax relief via the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP). Drivers should note that a discount applies if prices rise by more than 10 cents.

Update: Portugal to release 10% of strategic oil reserves

Prime Minister Luís Montenegro announced that Portugal will release two million barrels of oil—roughly 10% of its strategic reserves—to help stabilize fuel prices. This move follows an International Energy Agency agreement to release 400 million barrels globally due to supply risks in the Strait of Hormuz.

The government is confident that the European Commission will not oppose its temporary discount on the Tax on Petroleum and Energy Products (Imposto sobre os Produtos Petrolíferos or ISP) for diesel. Finance Minister Joaquim Miranda Sarmento stated that the measure is extraordinary and temporary, designed to mitigate the impact of high energy prices caused by conflict in the Middle East. Drivers should note that the discount is intended to provide immediate relief at the pump while the government monitors international oil market volatility. The tax relief remains a key part of the national strategy to manage rising living costs.

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.

Expresso reports the war in the Middle East has driven oil to one-year highs and European gas futures up by about 40%, a rise that is expected to affect consumer energy costs in Portugal. Analysts say fuels are likely to reflect the increases first, possibly as early as next week, which could push up household and transport costs. The immediate effect will be felt at the pumps and in short-term energy bills; longer-term impacts depend on how commodity markets and supply routes evolve. Drivers and households with tight budgets should monitor fuel prices and consider short-term cost-saving measures.