Portugal has scaled back its extraordinary fuel tax relief, reducing the discount on the Special Consumption Tax (ISP) to 7.4 cents per liter for diesel and 4.6 cents per liter for gasoline.
The adjustment, announced by the government, marks a significant reduction from previous rebate levels and will directly increase costs for consumers and transport operators at the pump.
The move reverses the trajectory of earlier support measures, which had raised rebates to €30.34 per 1,000 liters for diesel and €35.13 for unleaded gasoline.
By cutting the per-liter discount, the government is effectively withdrawing a substantial portion of the fiscal cushion that had been shielding domestic fuel prices from global market volatility.
This policy shift signals a tightening of fiscal support in the energy sector, likely driven by improved budgetary conditions or a strategic decision to let market prices reflect underlying costs more accurately.
For traders and investors, the reduction in subsidies removes a floor on domestic fuel prices, potentially increasing inflationary pressure on transport and logistics costs in the short term.