The week began with varied trends in fuel prices: gasoline became slightly cheaper while diesel prices increased, based on the updated average prices released on Tuesday by the Directorate-General for Energy and Geology (DGEG).
Specifically, regular 95 gasoline decreased from 1.694 euros per liter to 1.686 euros per liter between Friday and Monday, marking a drop of 0.8 cents.
In contrast, regular diesel rose from 1.522 euros per liter to 1.542 euros per liter during the same period, reflecting an increase of two cents.
Forecasts had indicated a two-cent rise for diesel and a two-cent drop for gasoline.
Government Pledges Gradual Reversal of ISP Discount
The Finance Minister assured that the phased removal of the existing discount on the Tax on Petroleum and Energy Products (ISP) by 2026 will aim to minimize impact on fuel prices.
The price of diesel is expected to rise by two cents, while gasoline is projected to drop by two cents this Monday. Consumers are advised to find the cheapest gas stations to save money.
During the debate on the State Budget proposal for 2026 (OE2026) in the Budget, Finance, and Public Administration Committee in parliament, Minister Joaquim Miranda Sarmento highlighted that the reversal of state support is mandated by the European Commission. This follows a “temporary discount established in 2022,” which took effect when oil prices surged to 120-130 dollars per barrel, compared to 60 dollars currently.
“The ISP discount reversal will be as gradual as possible, to avoid impacting the final price of gasoline and diesel,” affirmed Miranda Sarmento in response to a query from Chega party deputy Pedro Pinto about whether the reversal will be gradual or a complete 100% cut in the discount.
The minister reiterated that the discount is inherently temporary and emphasized that its phase-out will be managed “as far as possible” to protect “fuel prices at the pump.”
“Except for Spain, Portugal does not have fuel prices much higher than the majority of countries in the Eurozone,” he stated.
The Public Finance Council (CFP) in its recent opinion on the budget proposal, estimated that the abolition of the ISP discount along with the carbon tax update, if confirmed, will result in an additional revenue of 1.132 billion euros for the state.
In the third quarter of this year, Portugal remained among the EU countries with the highest fuel prices, driven by a tax burden above the community average, per data disclosed today by ERSE.
