Key facts
- Diesel prices in Portugal will rise by 13.5 cents per liter to €1.988 between July 20-26.
- Petrol prices will increase by 6.5 cents per liter to €1.980 in the same period.
- The Automobile Club of Portugal cites rising crude oil prices as the cause for the increase.
- Geopolitical tensions in the Middle East are contributing to higher global fuel prices.
- An investigation into fuel retailer pricing practices since 2024 has been requested by the Minister for the Environment and Energy.
- The Finance Minister confirmed that the VAT rate on fuel will remain unchanged.
Diesel and petrol prices are set to rise significantly in Portugal between July 20 and July 26. The Automobile Club of Portugal (ACP) and the Directorate-General for Energy and Geology (DGEG) forecast that diesel prices will increase by 13.5 euro cents per liter, reaching €1.988, while petrol prices will go up by 6.5 euro cents per liter, to €1.980.
The ACP attributes these price hikes to rising raw material costs, influenced by ongoing geopolitical tensions in the Middle East involving the United States, Israel, and Iran. These conflicts have affected global oil markets, particularly concerning the Strait of Hormuz, a critical route for oil and natural gas trade.
In response to pricing concerns, Maria Graça Carvalho, the Minister for the Environment and Energy, has requested the energy regulator, ERSE, to investigate fuel retailer prices since 2024. The minister seeks to understand why drops in international oil prices are not quickly reflected at the pump. However, Finance Minister Miranda Sarmento has stated that the government will not alter the current Value Added Tax (VAT) rate on fuel.