Since the beginning of this week, diesel has gone up by 6–6.5 cents per litre, while 95 petrol has risen by 4.5–5 cents. This happened even though the government increased the fuel tax (ISP — Imposto sobre os Produtos Petrolíferos) discount this week to 10.9 cents per litre for diesel and 7.4 cents for petrol. Without the discount, Prime Minister Luís Montenegro said, diesel would cost around €2.40 and petrol around €2.30.
The average price of diesel has approached €2.22 per litre — a new all-time high. Prices are higher at major fuel chains: €2.32 at BP, €2.31 at Repsol and €2.28 at Galp, while cheaper operators such as Plenergy are charging around €2.13. 95 petrol costs around €2.11 on average, but is still about 7 cents below its June 2022 record.
Since the start of the war in the Middle East, diesel has become more than 60 cents per litre more expensive, while petrol has risen by around 44 cents.
The reasons are not only domestic. Diesel prices are hitting records across Europe and in the US: Russia, Saudi Arabia and the UAE have sharply reduced exports, oil prices have more than doubled since the beginning of the year, and global refining capacity is operating at its limits. The closure of the Strait of Hormuz, through which around 20% of the world’s oil and gas trade passes, is also a factor, as are strikes on Russian refineries during the war in Ukraine.
The government has extended the 10-cent-per-litre discount for gasóleo profissional (a preferential scheme for freight transport operators) until the end of the year and allocated €38 million in support for the sectors most affected — transport companies, taxis, firefighters and social institutions. Parliament will also be asked to extend the temporary ISP reduction mechanism until 31 December. It allows the government to reduce the tax when fuel prices rise more than 10 cents above their early-March level.
