Fuel Price Hikes Hit Portugal: Quick Savings Tips for Drivers

Motorists across Portugal are bracing for yet another adjustment at the pump: diesel and petrol are both on the rise, pushed upward by a cocktail of global market pressures and domestic tax tweaks. The change may look modest on paper, but it lands at a moment when household energy bills are already under strain.

At a glance

• Diesel up 1.5 cents per litre, petrol up 0.5 cents.

• New averages: €1.573/l for diesel, €1.67 l range for petrol 95.

• Price gap to EU average widens, particularly for petrol.

• ISP discount is fading, and a higher carbon levy looms.

• Experts expect no swift relief while Brent crude stays volatile.

What will you pay at the pump?

Depending on where you top up, the advertised price of gasóleo simples next week should hover around €1.573/l, while gasolina 95 will flirt with €1.67/l. The projected rises—1.5 cents for diesel and 0.5 cents for petrol—are calculated by the Automóvel Club de Portugal (ACP) using data from the Directorate-General for Energy and Geology (DGEG). Because Portugal operates a fully liberalised fuel market, individual stations can diverge from these averages; discounts linked to loyalty apps or supermarket vouchers may shave a few tenths off the headline figure.

Why are prices climbing again?

Several overlapping forces are in play:

• Brent crude has traded above $82 in recent sessions, buoyed by supply concerns in the Middle East and stalled negotiations between Russia and Ukraine.

• Refining margins—the cost of turning oil into road fuel—have widened as European refineries scramble for winter-grade diesel.

• A firm euro-dollar exchange rate has dampened purchasing power for importers buying crude futures priced in dollars.

• Domestic distribution costs, from port fees to road transport, have nudged higher since the turn of the year.All of this feeds directly into retail pump prices, even before tax is applied.

Tax shake-up: goodbye to the ISP discount

The temporary rebate on the Imposto sobre Produtos Petrolíferos (ISP), introduced in 2022 to cushion families from oil-price shocks, is being phased out in monthly steps. Finance officials argue that the rollback brings Portugal in line with European Commission guidance, yet it effectively adds several cents per litre over the first quarter of 2026. To compound matters, a re-calibrated carbon tax will land in February, adding roughly 2.4 cents to petrol and 2.6 cents to diesel. Lawmakers say the introduction will be staggered, but consumer groups warn it could become a permanent surcharge on mobility.

How Portugal compares inside the Union

Latest figures from the European Commission’s weekly bulletin place Portugal 2.17 cents above the EU mean for gasolina 95 and in the top ten most expensive nations for gasóleo simples. While countries such as Germany and the Netherlands post higher absolute prices, they generally compensate with larger average salaries and wider public-transport networks. Lisbon commuters who clock 50 km daily now spend roughly €130 more per year on fuel than the EU-27 average driver, according to calculations by energy consultancy FuelWatch Iberia.

Survival tips for drivers

Even without new subsidies on the horizon, motorists still have levers to pull:

Fill up mid-week—prices tend to be lowest on Tuesday nights after Monday adjustments.

Compare apps that crowd-source station prices; spreads of 6-8 cents are common within the same metro area.

Enrol in loyalty programmes—major chains offer up to €0.10/l in cumulative discounts.

Keep tyres at the correct pressure; under-inflation can burn 4 % more fuel.

When feasible, switch to public transport in urban corridors where monthly passes cost far less than a single tank.

The road ahead

With Brent crude still buffeted by geopolitical jitters and Portugal’s tax cushion disappearing, analysts see little near-term relief for drivers. The National Energy Regulator (ERSE) expects “continued volatility” through spring, pointing to refinery maintenance schedules and an uncertain carbon-pricing debate in Brussels. For Portuguese households juggling mortgages, food inflation and rising fuel costs, the only certainty is that every extra cent at the pump now matters more than ever.