Portugal’s latest fuel-tax order reduced the temporary discount on gasoline and diesel from Nov. 9, limiting government relief as officials anticipated lower fuel prices.
Euronews reported that gasoline fell 9.5 cents per liter and diesel fell nine cents on Nov. 9. The Automóvel Clube de Portugal (ACP) had forecast larger declines: 12.5 cents per liter for gasoline and 11 cents for diesel during the week beginning Nov. 9. Its Nov. 6 projection put gasoline at €1.876 per liter, down from €2.00, and diesel at €2.095, down from €2.205.
The government order set combined reductions in the ISP and value-added tax (VAT) at 19.1 cents per liter for unleaded gasoline and 22.7 cents for road diesel. The previous order, effective Nov. 2, had set relief at 22.2 cents and 24.9 cents, respectively. The new amounts reduce the tax relief by 3.1 cents for gasoline and 2.2 cents for diesel.
In its Nov. 6 order, the government said the change followed its expectation that gasoline and diesel prices would fall the next week. The order says the temporary relief applies when prices exceed their March 2-6 levels by more than 10 cents per liter, and states that the threshold was met for both fuels for the week beginning Nov. 9.
The adjustment means motorists receive less tax relief as lower fuel prices were expected. The order linked the temporary measure to a geopolitical and military crisis in the Middle East, saying higher oil and derivative prices had affected households and businesses.
