Fuel prices to rise again next week in Portugal

Drivers in Portugal are set to face another increase in fuel prices next week, with both diesel and petrol expected to become more expensive despite recent fluctuations in global oil markets.

According to projections from the Portuguese Automobile Club (ACP), the price of regular diesel is expected to rise by around three cents per litre, while regular petrol is forecast to increase by two cents per litre.

Based on data from Portugal’s Directorate-General for Energy and Geology (DGEG), the average price of regular diesel is expected to reach €1.798 per litre, with regular petrol climbing to €1.897 per litre.

The increases continue a trend that has seen fuel prices rise steadily since early March. Compared with the week of March 2-6, diesel will have increased by a cumulative 13.7 cents per litre, while petrol will have risen by 17.3 cents per litre.

The forecasts could still change depending on movements in Brent crude oil prices before trading closes on Friday. As Portugal operates a liberalised fuel market, pump prices may also vary between retailers.

Motorists should also be aware of the government’s fuel tax support mechanism, introduced earlier this year in response to the conflict in the Middle East.

Under the scheme, the government applies an extraordinary reduction in the Tax on Petroleum and Energy Products (ISP) whenever fuel prices increase by more than 10 cents per litre. The tax relief is cumulative, meaning further increases can trigger additional reductions in the tax burden to help soften the impact on consumers.

Even with that mechanism in place, however, drivers are expected to pay more when filling up from next week.

Source: Sol

Inês Lopes

Newspaper editor at The Portugal Resident