The week commenced with an increase in fuel prices, affecting both diesel and gasoline, according to the updated average prices by the Directorate-General for Energy and Geology (DGEG).
The price of simple 95 gasoline rose from 1.684 euros per liter to 1.703 euros per liter between Friday and Monday, marking an increase of 1.9 cents.
Simple diesel saw a rise from 1.544 euros per liter to 1.584 euros per liter over the same period, an increase of four cents.
The daily average prices, it should be noted, “are determined based on the prices reported by fuel stations, weighted with the sales volumes of the last known period, incorporating discounts practiced at the stations such as fleet cards and others.”
The forecasts, it is worth noting, projected an increase of 4.5 cents for diesel and a rise of two cents for gasoline.
The price of diesel is expected to increase by 4.5 cents, while gasoline is projected to rise by two cents. Check out the most economical gas stations and learn how you can save.
Beatriz Vasconcelos | 09:02 – 03/11/2025
Reversal of the ISP discount will be “as gradual as possible”
The removal of the current discount on the Petroleum and Energy Products Tax (ISP) in 2026 will be implemented “as gradually as possible” to avoid impacting the final price of fuels, assured the Minister of Finance.
During the debate on the 2026 State Budget proposal (OE2026) in the Budget, Finance, and Public Administration Committee in parliament, Minister Joaquim Miranda Sarmento noted that the reversal of state support is a requirement of the European Commission, as it involves a “temporary discount created in 2022,” when, at the start of the Ukraine war, the barrel of oil “reached 120-130 dollars, while today it is at 60 dollars.”
“The reversal of the ISP discount will always be as gradual as possible, in order not to impact the final price of gasoline and diesel,” assured Miranda Sarmento, when questioned by Chega deputy Pedro Pinto about whether the reversal will be gradual or if there will be a total cut, 100%, in the discount.
The minister reminded that the discount is temporary by nature and insisted that its removal will be done, “to the extent possible,” seeking to “protect the price of fuels at the gas pump.”
“Except for Spain, Portugal does not have fuel prices significantly higher than most eurozone countries,” he said.
In the opinion on the budget proposal, released on Thursday, the Public Finance Council (CFP) estimates that the removal of the current ISP discount and the update of the carbon tax, if confirmed, will bring an additional revenue of 1.132 billion euros to the state coffers.
During the debate, Miranda Sarmento insisted that the OE2026 law does not increase any tax, including the ISP itself (whose rates are set by ordinance, within limits set by law).
“The State Budget law does not increase any tax, nor does it make an adjustment for inflation, as already occurred last year, for the so-called special consumption taxes, which include the ISP among others,” stated Miranda Sarmento.
Regarding direct taxes, the minister highlighted that in 2026, the IRS will be reduced again if parliament approves the OE2026 proposal, which foresees an update of the brackets by 3.51% and a reduction of rates from the 2nd to the 5th income brackets, following the reduction of rates from the 1st to the 8th bracket earlier this year.
With respect to IRC, Miranda Sarmento recalled, parliament has already approved a new reduction of the general rate (to 19% next year).
The reduction in tax burden is “significant,” within what is possible, given the level of Portuguese public debt, he noted.
