Portugal ranks among the top countries in the European Union for high fuel prices, according to the ‘Fuel Prices in the EU-27’ bulletin by the Energy Services Regulatory Authority (ERSE). It secured 8th place for the highest price of regular gasoline 95 and 9th for regular diesel, with both fuel types selling at prices above the European average.
The average sale price for regular gasoline 95 in Portugal stood at 1.697 euros per liter, with taxes accounting for 56% of this figure. This taxation rate exceeds the EU average of 55.2% and Spain’s rate of 49.2%. Including taxes, the Portuguese price was 21.3 cents higher per liter compared to Spain, although it was 0.9 cents cheaper per liter before tax considerations.
For regular diesel, the national average price reached 1.570 euros per liter, with taxes representing 51% of the total, once more surpassing the EU average of 49.6% and Spain’s 44%. The diesel price in Portugal was 15.2 cents per liter more than Spain, even though, prior to taxes, it was 2.0 cents cheaper.
Today, Finance Minister Joaquim Miranda Sarmento addressed parliament, assuring that the removal of the discount on the Tax on Petroleum and Energy Products (ISP) in 2026 will be implemented “as gradually as possible” to minimize impact on the final fuel prices.
The minister reminded that reversing the discount is mandated by the European Commission as it was a temporary measure introduced in 2022 when oil prices exceeded $120 per barrel. Currently, prices hover around $60 per barrel.
The Public Finances Council (CFP) estimates that abolishing the ISP discount and adjusting the carbon tax rate could generate an additional 1.132 billion euros in revenue for the state by 2026.
