Latest news and stories about fuel prices in government in Portugal for expats and residents.
Prime Minister Luís Montenegro faces a heated parliamentary debate as opposition parties criticize the government's response to rising fuel prices triggered by the conflict in Iran.
Economist Daniel Bessa argued this Tuesday in Porto that the State should freeze fuel prices and 'establish a ceiling' to prevent prices from soaring following the conflict initiated by Israel and the United States against Iran and the subsequent Iranian response. Even so, the former Minister of Economy believes the measure should...
The article explores how globalization links distant conflicts to the daily lives of the Portuguese. It highlights how wars in the Middle East, such as the current conflict involving Iran, directly impact fuel prices and the economy in Portugal, despite the geographical distance. The text also discusses the broader consequences of global instability, including migration crises and the potential economic devastation of a conflict in the Pacific, emphasizing that in an interconnected world, no event is truly far away.
Decisions regarding aid for consumers and industry should fuel, gas, and electricity prices exceed critical thresholds will be made by European Union leaders, the Minister of Environment stated on Monday, the 16th. Maria da Graça Carvalho noted that a list of potential measures will be discussed at the upcoming summit. The minister highlighted existing support mechanisms, such as social tariffs and the 'solidarity gas cylinder' programme, while noting that any market price intervention would require state budget compensation. The EU summit in Brussels on March 19-20 will focus on the crisis triggered by the war in Iran and the ongoing conflict in Ukraine, following the military escalation between the US, Israel, and Iran.
Paulo Raimundo accuses oil companies of speculating on fuel prices that were already “bought months ago”.
The Iniciativa Liberal party has called for an urgent parliamentary debate this Thursday to discuss and approve measures to mitigate the impact of the war in Iran on fuel prices in Portugal. Parliamentary leader Mário Amorim Lopes argues that the state has not lost any revenue despite minor tax reductions, and calls for legislative changes to lower the tax burden on citizens. Party leader Mariana Leitão advocates for a permanent reduction or elimination of the ISP tax rather than the temporary discounts currently implemented by the Luís Montenegro government.
Mário Amorim Lopes states that the war in Iran 'will have an impact on the lives of the Portuguese' which is already reflected in the 'very considerable' rise in fuel prices.
Portugal is facing another sharp rise in fuel prices this Monday, March 16, due to the national market practice of weekly price updates by major oil companies. Since February 27, the eve of the war with Iran, the average price of diesel in Portugal has risen by nearly 20% and petrol by 10%, despite state subsidies. While global oil prices have surged by 40% due to the closure of the Strait of Hormuz and ongoing regional conflicts, other European countries are managing the volatility differently. Malta, for instance, maintains government-administered, fixed prices that have remained unchanged, shielding consumers from the current crisis. Meanwhile, countries like Germany and France update prices daily, and others like Croatia and Slovenia use fortnightly caps to mitigate fluctuations.
The leader of the Socialist Party (PS) is urging the government to take action as fuel costs continue to increase.
The BE/Azores stated today that it will present an urgent legislative initiative in the regional parliament to prevent fuel price increases in the region, due to the conflict in the Middle East.
The war in the Middle East has triggered a new rise in fuel prices. Next week, standard diesel will increase by about ten cents per litre and 95-octane petrol will rise by 10.3 cents. To mitigate the impact on consumers, the Government has approved new extraordinary reductions in the tax on petroleum and energy products (ISP) for mainland Portugal. Prime Minister Montenegro admits further measures may be taken. From Monday, the average price of 95-octane petrol is expected to reach 1.883 euros per litre, while standard diesel will rise to 1.937 euros per litre. These forecasts are based on current data from the Directorate-General for Energy and Geology and projections from the National Association of Fuel Retailers. The Ministry of Finance stated that, combined with previous discounts, customers will save 6.1 cents on diesel and 3.3 cents on petrol compared to prices from the week of 2-6 March. The price increases follow a surge in Brent crude oil prices, which rose over 9% to 100.46 dollars per barrel on Thursday, the highest value since 2022, driven by Iranian statements regarding the Strait of Hormuz.
The 'rip-off' in fuel prices is not at the pump, which adjusts prices to replacement costs. It lies in the fact that half the value goes to the State via the ISP, a tax on a tax, which is an aberration.
The article mentions that Portugal has recently reduced fuel taxes to help limit price hikes at the pump, aiming to ease the burden on consumers amid ongoing economic concerns.
The Portuguese government has approved a temporary, additional reduction in the fuel tax (ISP) rates for diesel and unleaded gasoline, effective from Monday. This measure aims to prevent fuel prices from rising—by approximately 9.8 cents per liter for diesel and 10.5 cents for gasoline—by offsetting the impact of market volatility. With these reductions, consumers will save about 1.8 cents on diesel and 3.3 cents on gasoline per liter next week, totaling a savings of 6.1 and 3.3 cents respectively compared to early March prices. The adjustments are part of a mechanism to stabilize fuel prices when increases exceed 10 cents per liter, helping to mitigate inflationary pressures on consumers.
The article highlights Portugal's recent decision to cut fuel taxes in an effort to curb rising fuel prices at the pump. This measure aims to provide relief to consumers amid economic pressures, reflecting Portugal's response to ongoing energy cost challenges.
The tax discount only prevents the State from profiting, but its effect on containing prices is limited. The State is not losing revenue at a time when it is still paying out support measures motivated by the war in Ukraine.
UTAO highlights that the provisional result for 2025 'constitutes a more favourable starting point for the 2026 execution and the budgetary objective intended to be achieved this year'
The temporary relief on the ISP (petroleum products tax) cost 604 million euros in 2025, according to estimates from the Technical Budget Support Unit (UTAO), which is calling for greater transparency regarding the impact of maintaining this measure. The UTAO report on 2025 public accounting budget execution highlights that the inflation relief package worsened the overall balance by 1.106 billion euros, with the ISP tax relief being the largest burden. The government has begun a gradual phase-out of the measure, though the UTAO criticizes the lack of detailed impact data for 2025 and 2026. Meanwhile, the government announced new extraordinary tax cuts for the coming week, expected to save consumers 1.8 cents per litre on diesel and 3.3 cents on petrol.
Fuel prices are rising, putting pressure on the entire supply chain. Members of Parliament Rui Afonso (Chega), Miguel Costa Matos (PS) and Inês Sousa Real (PAN) advocate for the return of 0% VAT.
The blockade of the Strait of Hormuz leads Trump to authorise the sale of Russian oil. The measures taken in Portugal to contain fuel prices and the scale of this crisis. And Sócrates, once again.
A new increase in petrol and diesel prices is coming. There are more conservative states (which is the case for Portugal) and others that are more aggressive in the way they are intervening to control prices and/or help citizens.
The executive director of CM and CMTV says it is a discount of two or three cents.
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.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
Maria da Graça Carvalho, the Energy Minister, is a Portuguese engineer and politician affiliated with the Social Democratic Party (PSD) who has served as a Member of the European Parliament and held government roles connected to science and higher education policy. Her work on research and EU policy can affect funding and regulation that matter to professionals and students living in Portugal.
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.
Maria da Graça Carvalho, the Energy Minister, is a Portuguese engineer and politician affiliated with the Social Democratic Party (PSD) who has served as a Member of the European Parliament and held government roles connected to science and higher education policy. Her work on research and EU policy can affect funding and regulation that matter to professionals and students living in Portugal.
The ISP is Portugal's excise tax on fuels — the Tax on Petroleum and Energy Products (Imposto sobre Produtos Petrolíferos e Energéticos) — charged as a unit rate per litre on petrol, diesel and other fuels. The government sets and can temporarily cut those unit rates; a recent decision to reduce the rate for road diesel on the mainland aims to lower pump prices and reduce transport costs for drivers and businesses, though it also lowers tax revenue.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
The Government currently perceives the rise in fuel prices as a significant but potentially temporary issue, despite immediate impacts on consumers. An editorial by Marta Moitinho Oliveira discusses the rush of drivers to petrol stations in anticipation of price hikes due to geopolitical tensions, particularly American attacks in Iran. While the government has implemented a discount to mitigate the increase in diesel prices, consumers will still face higher costs for petrol. The situation has led to record high fuel prices in Portugal, raising concerns among the public.
Galp and Moeve have entered detailed talks to combine their refining operations and filling-station networks, a complex transaction that is likely to be lengthy and closely scrutinised. The Portuguese Communist Party has already criticised the proposed deal and the government will have a role in the approval process, raising political as well as regulatory stakes. The transaction will test Brussels’ evolving approach to competition and regulation in the energy sector, with implications for pricing, investment and market structure in Portugal.
