Diesel to go up 18 cents and petrol 9
The price of fuel in Portugal is set to go up again next week with diesel and petrol costing 18 cents and 9 cents more respectively.
It dashes hopes that energy prices which had fallen this week would remain at the current price. But next week fuel prices at the pumps will go up again.
From Monday, the cost of filling up a vehicle will be 18 cents dearer for diesel and nine cents more for petrol driven vehicles.
If these numbers are confirmed, and the government adopts the formula it presented two weeks ago to offset the increases, then the ISP fuel duty will fall 2.7 and 1.4 cents respectively to one again compensate for the increase in VAT revenues.
This means that the price of a litre of simple diesel will be €2.003 and €1.927 for a litre of petrol.
It is not yet sure how the government will react to the price hikes. It had created a temporary support mechanism to mitigate the effects of rising fuel prices which lowered ISP tax in proportion to the increase in VAT revenues so that the increase would be cancelled out in terms of VAT tax. Fuel duties in Portugal are set at around 50% of each litre sold.
This week ending today (25 March) fuel prices went down rather than up and the government decided to keep the ISP reduction that had been put in place the week before – 2.4 cents on ISP for diesel and 1.7 cents for petrol — in the expectation it would offset the fuel inflation which has been seen now for 14 consecutive weeks in the case of diesel and 11 in the case of petrol.