“There is an area of about 50 km where people might decide to refuel in the neighboring country, and then the tax revenue shifts to Spain. Pay attention to all these measures that will only burden, increase, and widen the ISP difference already existing between Portugal and Spain, in addition to the VAT at 23%; in Spain, it is 21%,” warned the co-president executive (CEO) of Galp João Diogo Silva in statements to the news agency at the inauguration of the first Galp Goody service-concept station on the Highway 5 in Oeiras.
The official noted that the current price difference between Portugal and Spain is around eight to 10 cents, depending on the type of fuel, and emphasized that when considering tax revenue, one must “think about all angles of this revenue.”
“I believe the Government is aware of these impacts, which can be much greater than the tax revenue from an increase in the ISP,” he noted.
The Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, admitted this week to possible “adjustments” in fuel prices following a letter from the European Commission urging the Government to end the discounts on the Tax on Petroleum and Energy Products (ISP).
The European Commission prompted Portugal to end the discount on the Tax on Petroleum Products (ISP), which could lead to a price increase of up to 10% in fuels. The Government has already acknowledged possible “adjustments” in fuel pricing.
Beatriz Vasconcelos with Lusa | 08:36 – 02/10/2025
Still on the topic of taxation, João Diogo Silva expressed a “great concern” regarding products entering Portugal overland, on which not all tax rules are applied, recalling that in Spain, several measures were implemented to “protect the Spanish State, with more than 2,000 million euros of uncollected tax revenue.”
“The Portuguese Government is aware of this, and we have been working a lot with the Government in this sense, and we hope these measures will now be implemented and approved with the State Budget,” he emphasized.
João Diogo Silva reminded that Galp is investing more than 650 million euros in the Sines refinery, where it will be able to produce renewable-based fuels—HVO, sustainable aviation fuel (SAF), and green hydrogen.
“When we talk about Government and policy, we need to understand the importance these types of investment have for our country, to keep it competitive, sustainable, and to provide it with autonomy and supply security,” he highlighted.
Galp inaugurated today its first service station with the Goody concept, part of an image and asset renewal project planned for 250 stores in the coming years in the Iberian Peninsula.
There is another inauguration planned in Lisbon, possibly by the end of the year, and one more in Porto early next year.
