Fuel Prices in Portugal Set to Rise Sharply Next Week

In the coming week, from 20 to 26 July, fuel prices are set to rise sharply.

According to the Automóvel Clube de Portugal (ACP) and the forecasts of the Directorate-General for Energy and Geology (DGEG), the price of diesel is expected to increase by 13.5 euro cents and that of petrol by 6.5 euro cents per litre.

As a result, next week diesel will cost consumers €1.988 per litre and petrol €1.980 per litre.

The ACP adds that the average figures are based on 'raw material prices at the close of markets last Thursday', but that until Friday there may still be fluctuations in the prices of crude oil and fuels.

The war in the Middle East, involving the US, Israel and Iran, continues to drive prices up and the government has pledged to apply an extraordinary and temporary reduction in ISP (Tax on Petroleum and Energy Products) whenever the increase exceeds 10 cents.

The Strait of Hormuz, through which 20% of global trade in oil and natural gas passes, was initially closed after the start of the United States and Israel's war against Iran on 28 February, sending prices for oil, fertilisers and other goods soaring far beyond the region and giving Iran significant leverage in negotiations.

This week there has been an escalation in the fighting between the two sides, bringing an end to the provisional agreement to halt the war against Iran.

Minister calls for inspections of petrol stations

According to the newspaper Expresso, on Thursday the Minister for Environment and Energy, Maria Graça Carvalho, sent a request to ERSE for inspections to examine the fuel prices charged by petrol stations since 2024.

In the letter, the minister asked for 'a detailed study of the past two years - within 20 days - to explain why falls in oil prices on international markets take so long to be reflected in pump prices', Expresso reports.

Cutting VAT on fuel is an issue that has been widely debated, but the Finance Minister, Miranda Sarmento, insisted in Wednesday's debate that he will not change the tax rate.