Good news for drivers! Fuel prices in Portugal are expected to drop again next week.
According to recent data, diesel, the most commonly used fuel, is projected to decrease by two cents per liter. Petrol, on the other hand, is expected to become half a cent cheaper. This information comes from the ACP.
So, what does this mean for your wallet? When you fill up, you should anticipate paying around €1.584 per liter for regular diesel and approximately €1.659 per liter for regular 95 petrol. These figures are based on the average prices observed at the pumps on Monday, as reported by the Directorate-General for Energy and Geology (DGEG). This marks the second consecutive week of price drops for diesel and the third for petrol.
But here's where it gets controversial... This week's price reduction could have been even more significant. Diesel fell by 2.8 cents, and petrol dropped by 1.4 cents. However, the government adjusted fuel taxation, reducing the discount on the Tax on Petroleum Derivatives (ISP). They essentially took advantage of the anticipated price drop to increase tax revenue.
Specifically, from December 1st, the ISP on petrol will be 49.7 cents, up from the previous 48.12 cents. For diesel, it will be 36.16 cents, compared to the previous 33.72 cents. This means you'll now pay 65 cents in ISP and carbon tax for each liter of petrol (an increase of 1.6 cents), and 52.83 cents for each liter of diesel, which is 2.4 cents more. Remember, this is before the additional 23% VAT is applied.
What are your thoughts on the government's decision to adjust fuel taxation? Do you believe it was a fair move, or should they have allowed the full price drop to benefit consumers? Share your opinion in the comments below!
