Portugal diesel and petrol prices to rise next week

Diesel and petrol prices in Portugal will increase during the week of 20–26 July. Diesel is projected to rise 13.5 euro cents per litre and petrol 6.5 euro cents per litre. The new prices will reach €1.988 per litre for diesel and €1.980 per litre for petrol, according to forecasts from the Automóvel Clube de Portugal and the Directorate-General for Energy and Geology.

Price forecasts and market factors The average figures are based on raw material prices at the close of markets last Thursday. Fluctuations in crude oil and fuel prices may still occur until Friday. The war in the Middle East involving the United States, Israel and Iran continues to drive prices up.

The government has pledged to apply an extraordinary and temporary reduction in the Tax on Petroleum and Energy Products whenever the increase exceeds 10 cents.

Background on supply routes and policy The Strait of Hormuz, through which 20% of global trade in oil and natural gas passes, was initially closed after the start of the United States and Israel's war against Iran on 28 February. This closure sent prices for oil, fertilisers and other goods soaring far beyond the region.

This week there has been an escalation in the fighting between the two sides, bringing an end to the provisional agreement to halt the war against Iran.

Government actions on pricing A minister sent a request to ERSE for inspections to examine the fuel prices charged by petrol stations since 2024. The request asked for a detailed study of the past two years within 20 days to explain why falls in oil prices on international markets take so long to be reflected in pump prices.

The Finance Minister insisted in Wednesday's debate that the government will not change the VAT rate on fuel.