The prices of fuels will experience a mixed dynamic at the start of next week, as revealed by the Automobile Club of Portugal (ACP) this Friday.
Diesel prices are expected to rise by two cents, while gasoline will see a decrease of two cents.
Currently, simple diesel is priced at 1.522 euros per liter, whereas simple gasoline 95 costs 1.695 euros per liter, based on the most recent average prices updated by the Directorate-General for Energy and Geology (DGEG) on their site Preços dos Combustíveis Online.
The removal of the ongoing discount on the Tax on Petroleum Products (ISP) and the update of the carbon tax would generate an additional revenue of 1.132 million euros for the state coffers, estimates the Public Finance Council (CFP).
In the analysis report of the proposed State Budget for 2026 (OE2026), the CFP estimates that the annual direct revenue increase expected with the full update on January 1, 2026, of the ISP rates could amount to 873 million euros.
Furthermore, the update of the carbon tax in 2026, according to CFP projections, would lead to an additional tax revenue of 47 million euros. “To these two components, which form part of the price of petroleum products, an additional VAT revenue of 212 million euros would be added, since this tax applies to all components forming its price,” notes the entity.
Thus, the potential increase in tax revenue resulting from the end of the ISP discount and the update of the carbon tax for 2026 “would result in an additional revenue gain of 1.132 million euros (0.4% of GDP), if the reversal of these measures went ahead at the beginning of the next year and in full,” the CFP concludes.
This assessment emerged due to recommendations from the European Commission to reduce these discounts, as they are exceptional measures aimed at mitigating the impact of rising fuel prices.
However, the Government has not included any forecasts for the elimination of these discounts in the OE2026 proposal and has already indicated that the process should be gradual.
Finance Minister Joaquim Miranda Sarmento assured that the government is working on a solution that will not increase fuel prices, noting that they will seek “moments of price reduction to revert these discounts.”
Brent crude oil for December delivery ended Thursday in the London futures market up by 5.43%, at $65.99, following the U.S. announcement of sanctions against Russian oil companies Rosneft and Lukoil.
North Sea crude, a benchmark in Europe, closed the session on the International Exchange at $3.40 above the $62.59 it finished the previous day’s trading.
The continuation of the bullish trend in Brent was primarily due to sanctions announced by Donald Trump on Wednesday against major Russian oil companies, raising fears of a reduction in the global oil supply and increasing the geopolitical risk premium on crude.
