This week brings good news for drivers, as fuel prices are expected to decrease, according to forecasts released last week by the Automóvel Club de Portugal (ACP). Gasoline is expected to drop by half a cent, and diesel should be two cents cheaper.
“According to the Direção Geral de Energia e Geologia (DGEG), the average price per liter of diesel in Portugal was 1.573 euros on Friday, October 3, while gasoline was priced at 1.707 euros. If predictions for next week are confirmed, the average price of simple diesel will settle at 1.553 euros, and simple gasoline 95 at 1.702 euros,” the ACP explains in a note published on its website.
The ACP emphasizes that “these forecasts are based on the assumption of the continuation of extraordinary tax reduction measures applied by the government to mitigate the increase in prices.”
“The current measures include the reduction of the Imposto sobre Produtos Petrolíferos (ISP) and compensation for the additional VAT revenue,” adds the ACP, noting that this reduction in the ISP has been widely discussed in recent days.
Which are the cheapest gas stations?
According to the latest data published by the DGEG on the Preços dos Combustíveis Online website, these are the most economical supply stations:
To find the cheapest gas stations near you, you can visit this link and initially select the ‘filter by municipality’ option, then click on the corresponding district in the list that will be displayed. Finally, you should select the municipality you want to consult, as well as the type of fuel.
“ISP in Portugal is above the minimum required”
The EPCOL – Empresas Portuguesas de Combustíveis e Lubrificantes reiterated on Friday that the Imposto sobre Produtos Petrolíferos e Energéticos (ISP) in Portugal is above the minimum required and, including the carbon tax, aligns with the European average.
“The ISP in Portugal is above the minimum required by the energy taxation directive (ETD),” stated EPCOL in a written response to Lusa, emphasizing that including the carbon tax, the tax “is in line with the European average.”
The association (formerly Apetro – Associação Portuguesa de Empresas Petrolíferas) further highlighted that the ISP in Portugal “is much higher than in Spain and any increase will worsen the price differential between the two countries with consequences we all know.”
The Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, admitted this week “adjustments” in fuel prices after a communication from the European Commission (EC) urging the government to end discounts on ISP.
On Thursday, Galp’s co-CEO, João Diogo Silva, warned that removing discounts on ISP would increase the price difference of fuels between Portugal and Spain, and the impact of more people refueling in the neighboring country could exceed the revenue from the tax increase.
“There is an area of about 50 km where people might decide to refuel in the neighboring country, and then the tax revenue goes to Spain. Be mindful of all these measures that will only burden, increase, and widen the difference in ISP that already exists between Portugal and Spain, adding to the VAT of 23%, while in Spain it is 21%,” warned Silva in statements to Lusa.
João Diogo Silva pointed out that the current price difference between Portugal and Spain is around eight to ten cents, depending on the fuels, and considered that when thinking about tax revenue, it’s essential to “consider all angles of that revenue.”
“I believe the government is aware of those impacts, which can be much greater than the tax revenue from an increase in ISP,” he noted.
