Fuel prices set to fall next week

Drivers in Portugal are set to get some relief at the pump next week, with fuel prices expected to fall sharply following a drop in oil prices triggered by an agreement to end hostilities in the Middle East.

Citing a source from fuel retailers’ association ANAREC, CNN Portugal reports that diesel is expected to become around 11 cents per litre cheaper from next week, while petrol prices could fall by approximately six cents per litre.

The decline follows a fall in global oil markets after Iran confirmed the signing of an agreement with the United States aimed at ending the conflict in the region. As part of the deal, Iran is expected to reopen the Strait of Hormuz, one of the world’s most important oil shipping routes, while the United States will suspend its naval blockade.

The announcement helped ease concerns over potential disruptions to global energy supplies, sending oil prices lower.

Brent crude, the European benchmark, fell by around 3% to just over $77 a barrel, while US benchmark WTI dropped to about $74 a barrel, its lowest level since early March.

Lower crude prices generally take several days to filter through to fuel retailers, with Portuguese motorists expected to see the impact when new weekly fuel prices take effect.

Source: CNN Portugal

Michael Bruxo

Journalist for the Portugal Resident.