Another Sunday has arrived, and with it comes some ‘extra’ time to refuel… but is it worth it? Forecasts indicate that fuel prices will experience a mixed trend, meaning gasoline is expected to become more expensive while diesel should become cheaper.
Projections from the Automobile Club of Portugal (ACP), announced last Friday, suggest the price of diesel will rise by two cents, while gasoline will decrease by two cents.
Thus, if these predictions are confirmed, the average price for simple diesel is expected to be 1.543 euros, and simple 95 gasoline will drop to 1.675 euros, from the week of October 27 to November 2.
“It should be noted that these forecasts are based on the assumption that the government’s extraordinary tax reduction measures remain in place to mitigate price increases,” the ACP stated.
Reversing the ISP Discount to be “as gradual as possible”
Last Friday, Finance Minister Joaquim Miranda Sarmento assured that the removal of the discount on the Tax on Petroleum and Energy Products (ISP) by 2026 will be done “as gradually as possible” to avoid impacting final fuel prices.
During the debate of the draft State Budget for 2026 (OE2026) in the Committee on Budget, Finance, and Public Administration in parliament, Minister Joaquim Miranda Sarmento recalled that the reversal of state support is an obligation of the European Commission, as it is concerned with a “temporary discount created in 2022,” when the price of oil “reached 120-130 dollars a barrel,” whereas it is now at 60 dollars.
“The reversal of the ISP discount will always be as gradual as possible so as not to impact the final price of gasoline and diesel,” assured Miranda Sarmento when questioned by Chega deputy Pedro Pinto on whether the reversal would be gradual or a 100% cut in the discount.
The minister emphasized that the discount is temporary by nature and insisted that its elimination will be done “to the extent possible” in an attempt to “protect fuel prices at the pump.”
“Except for Spain, Portugal does not have substantially higher fuel prices than most Eurozone countries,” he stated.
The elimination of the current discount on the Tax on Petroleum and Energy Products (ISP) by 2026 will be done “as gradually as possible” to avoid affecting the final fuel prices, the finance minister assured today.
Lusa | 11:22 – 24/10/2025
CFP: End of ISP Discount and ‘New’ Carbon Tax Could Yield 1.132 Billion
On Thursday, the Public Finance Council (CFP) estimated that eliminating the current ISP discount and updating the carbon tax would generate additional state revenue of 1.132 billion euros.
In the report analyzing the State Budget proposal for 2026 (OE2026), the CFP estimated the impact of eliminating the current Tax on Petroleum and Energy Products (ISP) discount, concluding that the direct annual impact of the expected revenue increase with the full update on January 1, 2026, of the ISP rates could rise to 873 million euros.
Furthermore, the update of the carbon tax in 2026, according to CFP projections, would lead to an increase in tax revenue of 47 million euros. “In addition to these two components, which are integral parts of the petroleum product price, an additional VAT revenue, amounting to 212 million euros, would result from the fact that this tax applies to all price-forming components,” the entity notes.
Eliminating the current ISP discount and updating the carbon tax would generate additional state revenue of 1.132 billion euros
Lusa | 16:21 – 23/10/2025
