Iniciativa Liberal Proposes Disclosing Full Fuel Tax Breakdown
The Liberal Initiative (Iniciativa Liberal or IL) submitted a bill requiring petrol stations to display the full tax burden per litre on fuel prices rather than the government-mandated discount on the Tax on Petroleum Products (Imposto sobre Produtos Petrolíferos or ISP). The party argued that consumers deserve transparent tax details and called for removing fines currently imposed on station operators. Meanwhile, an Intercampus poll showed over two-thirds of respondents favor stronger government action to lower fuel prices.
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.
- 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.
