“The ISP in Portugal is above the minimum required by the energy taxation directive (ETD),” highlighted EPCOL in a written response, noting that, including the carbon tax, this tax “is in line with the European average”.
The association (formerly Apetro – Portuguese Association of Petroleum Companies) also emphasized that the ISP in Portugal “is much higher than in Spain, and any increase will exacerbate 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 to “adjustments” in fuel prices after a letter from the European Commission urging the Government to end ISP discounts.
On Thursday, the co-CEO of Galp, João Diogo Silva, warned that ending ISP discounts would worsen the fuel price difference between Portugal and Spain, and the impact of more people fueling up in the neighboring country could be greater than the revenue from the tax increase.
“There is a network of about 50 km where people can decide to fuel up in the neighboring country, and then the tax revenue moves to Spain. Be mindful of all these measures that will only burden, increase, and expand the ISP difference that already exists between Portugal and Spain, in addition to VAT at 23% in Portugal and 21% in Spain,” warned the executive, in statements to the news agency.
João Diogo Silva pointed out that the current price difference between Portugal and Spain is around eight to 10 cents, depending on the fuels, and asserted that when considering tax revenue, it is necessary to “think of all angles of that revenue”.
“I believe the Government is aware of these impacts, which can be much greater than the fiscal revenue from an ISP increase,” he emphasized.
