Fuel price rise will be painful: diesel expected to jump 7 cents/ litre

Drivers, haulage companies and businesses generally in Portugal are expected to face a sharp increase in fuel prices next week, with diesel forecast to rise by seven cents per litre and petrol by three cents, according to provisional industry estimates.

A sector source told Notícias ao Minuto that the increases are expected to take effect at the start of the week, with diesel seeing the largest jump.

Final pricing was due to be confirmed later today.

According to the Directorate-General for Energy and Geology’s (DGEG) Preços dos Combustíveis Online portal, the current national average price stands at €1.793 per litre for regular diesel and €1.893 per litre for regular 95-octane petrol.

The latest increases come after renewed volatility in global oil markets. Although Brent crude for September delivery fell 2.2% on Thursday to $76.30 a barrel on the London futures market, oil prices have generally risen over the past week, as a result of new attacks exchanged between Iran and the Americans/ Israelis.

Market analysts warned yesterday that investor concerns over inflation and weaker global demand outweigh the impact of renewed military tensions.

Government monitoring fuel price pressures

Portugal’s government has acknowledged growing concern over the economic impact of renewed instability in the Middle East.

Finance Minister Joaquim Miranda Sarmento admits that the situation remains “highly uncertain and volatile”, warning that any escalation affecting shipping through the Strait of Hormuz could drive oil prices higher, and feed through to fuel costs.

The government is closely monitoring developments and will assess the impact on fuel prices over the coming weeks, he told reporters, before deciding whether any new intervention to stave off impacts on the national economy is necessary.

Source: noticiasaominuto

Natasha Donn

Journalist for the Portugal Resident.