The reduction of ISP was planned until the end of August. But it will be extended until the end of September, according to CNN Portugal.
The government will extend the tax cut on petroleum products (ISP) for another month, maintaining the current cut in final fuel prices, reports CNN Portugal.
The measure, introduced since May to ease the rise in final fuel prices, which soared after Russia’s invasion of Ukraine, with more emphasis on diesel, was originally announced for May and June only before being extended to July and August. . Now it will be extended for another month, that is, for five months.
The cumulative effect of the announced measures will remain the same as in the last two months, so the final price cuts will be similar. In other words, what was announced at the end of June by the Ministry of Finance will be preserved: “The reduction in the tax burden will be 28.2 cents per liter of diesel fuel and 32.1 cents per liter of gasoline.“
Plain diesel fuel, which is sold on average in mainland Portugal for 1,885 euros per liter (Tuesday prices, according to the Directorate General of Energy and Geology), would have cost 2167 euros today if the ISP reduction had not been introduced.
Plain gasoline 95, which is sold at an average of 1781 euros per liter, will cost 2,102 euros per liter no provider abbreviation.
The tax cut was announced by Finance Minister Fernando Medina in May as temporary, as a way to calm rising fuel prices as a result of the war in Ukraine. At that time, it was valid only for two months, and now this period has been increased to five months.
It should be noted that the greatest pressure on fuel is felt in diesel fuel, which is about 10 cents more expensive than gasoline, which is unprecedented. So much so that gasoline is now slightly cheaper than it was before the invasion, which is only due to tax cuts. The final price of diesel is about 22 cents higher than it was before the invasion and would have been almost 50 cents more expensive without the ISP cut.