Fuel prices are set to rise at the beginning of next week, announced the Automobile Club of Portugal (ACP) this Friday.
The price of diesel is expected to increase by 4.5 cents, while gasoline will rise by two cents.
Currently, regular diesel is priced at 1.544 euros per liter, and regular 95 gasoline is at 1.684 euros per liter, based on the latest average prices updated by the Directorate-General for Energy and Geology (DGEG) on their website Preços dos Combustíveis Online.
The reversal of the discount on the Tax on Petroleum and Energy Products (ISP) in 2026 will be done “as gradually as possible” to avoid affecting the final price of fuels, assured the Minister of Finance.
During the debate on the State Budget proposal for 2026 (OE2026) in the Budget, Finance and Public Administration Commission at parliament, Minister Joaquim Miranda Sarmento emphasized that the reversal of state support is an obligation of the European Commission, as it concerns a “temporary discount created in 2022,” when the price of a barrel of oil reached “120-130 dollars, whereas today it is 60 dollars.”
The removal of the discount currently in force on ISP in 2026 will be done “as gradually as possible” to avoid impacting the final price of fuel, said the Finance Minister today.
“The reversal of the ISP discount will always be as gradual as possible, to avoid impacting the final price of gasoline and diesel,” assured Miranda Sarmento when asked by Chega deputy Pedro Pinto whether the reversal would be gradual or if there would be a 100% cut in the discount.
The minister reiterated that the discount is temporary by nature and insisted that its removal will be conducted “as much as possible,” aiming to “protect the price of fuel at the gas pump.”
“With the exception of Spain, Portugal does not have much higher fuel prices than most countries in the eurozone,” he remarked.
In the opinion on the budget proposal released on Thursday, the Public Finance Council (CFP) estimates that the removal of the 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.
In today’s debate, Miranda Sarmento emphasized that the OE2026 law does not increase any tax, including the ISP itself (whose rates are set by order, within limits defined by law).
“The State Budget law does not increase any taxes, nor does it adjust for inflation, as it did last year, in the so-called special consumption taxes, where, among others, the ISP is included,” stated Miranda Sarmento.
Regarding direct taxes, the minister noted that in 2026, the IRS will be reduced again if the parliament approves the OE2026 proposal, which foresees a 3.51% adjustment of the brackets and a reduction of rates from the 2nd to the 5th income levels, following the reduction of rates from the 1st to 8th brackets earlier this year.
Regarding corporate tax, Miranda Sarmento reminded that the 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 feasible, given the level of Portuguese public debt, he noted.
