The prices of fuel are set to rise this Monday, as predicted last week by the Automóvel Club de Portugal (ACP).
The price of diesel is expected to increase by 4.5 cents, while gasoline is predicted to rise by two cents.
At present, regular diesel is priced at 1.544 euros per liter, and standard 95 octane gasoline costs 1.684 euros per liter, according to the latest average prices updated by the Directorate-General for Energy and Geology (DGEG) on the Fuel Prices Online site.
Where are prices cheapest?
According to recent data from the DGEG, these are the country’s cheapest fuel stations:
To find the cheapest fuel stations near you, you can visit this link and select the ‘filter by municipality’ option at the top, then choose the respective district from the list provided. Finally, select the municipality you wish to consult, as well as the type of fuel.
ISP Discount Rollback Will Be “As Gradual as Possible”
The phase-out of the current discount on the Tax on Petroleum Products and Energy (ISP) in 2026 will be carried out “as gradually as possible” to avoid affecting the final price of fuels, assured the Minister of Finance.
During the debate on the draft State Budget for 2026 (OE2026) in the Budget, Finance, and Public Administration Committee in parliament, Minister Joaquim Miranda Sarmento noted that the withdrawal of state support is a requirement by the European Commission, as it concerns a “temporary discount created in 2022” when, at the start of the Ukraine war, the barrel of oil “reached 120-130 dollars, whereas today it is 60 dollars.”
“The rollback of the ISP discount will always be as gradual as possible, so as not to impact the final price of gasoline and diesel,” stated Miranda Sarmento when questioned by Chega deputy Pedro Pinto about whether the rollback will be gradual or if there will be a complete 100% cut in the discount.
The minister emphasized that the discount is temporary by nature and insisted that its removal will be done within what is feasible, aiming to “protect the fuel prices at the pump.”
“With the exception of Spain, Portugal does not have significantly higher fuel prices than most Eurozone countries,” he noted.
In its opinion on the budget proposal, released on Thursday, the Public Finance Council (CFP) estimates that the phase-out of the ISP discount and the update of the carbon tax, if confirmed, will bring an additional revenue of 1.132 billion euros to state coffers.
In today’s debate, Miranda Sarmento reiterated that the OE2026 law does not raise any taxes, including the ISP itself (whose rates are defined by decree, within limits set by law).
“The State Budget law does not increase any tax, nor does it adjust for inflation, as was the case last year, for the so-called special consumption taxes, where, among others, the ISP is included,” stated Miranda Sarmento.
Regarding direct taxes, the minister highlighted that in 2026, the IRS will decrease again if parliament approves the OE2026 proposal, which provides for a 3.51% tier update and a reduction in rates from the 2nd to the 5th income levels, following the rate cuts from the 1st to the 8th bracket earlier this year.
In the case of corporate tax, Miranda Sarmento reminded that parliament has already approved a new reduction of the general rate (to 19% next year).
The reduction in the tax burden “is significant,” within what is possible, given the level of Portuguese public debt, he noted.
