The Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, acknowledged potential “adjustments” in fuel prices following a letter from the European Commission urging the government to end fuel tax discounts.
Speaking at the inauguration of Euronext’s facilities in Porto, Almeida noted that “Portugal has long been in violation on this issue, but has been gradually adjusting.”
The report of the letter was initially revealed by a business publication.
“We already made adjustments last year as the European Commission requested,” said the minister, indicating that such changes inevitably lead to adjustments in the final price of gasoline and petroleum products, which is “not good news.”
“We have been resisting,” he emphasized, warning that it is not possible “to resist forever.”
“Adjustments will be necessary, but the government’s position last year was to make adjustments only when there is a drop in gasoline prices, so people don’t feel they are paying more for gasoline due to increased taxes,” he explained.
However, he remarked, “it is unthinkable to do it all at once.” If the discount were completely reversed, it would reportedly result in a roughly 10% increase.
Regarding the slowing inflation rate, he remarked that it was “good news,” as it means more disposable income for people and aligns the country more closely with European objectives.
