Next week’s ISP decline will be 22.2 cents per liter for diesel and 26.3 cents for gasoline, which translates into an additional 1.2 cents for gasoline and 0.4 cents for diesel, according to government data.
According to a statement released today by the Ministry of Finance, “Given the prospect of price changes next week and price changes observed over the past two weeks, there will be a further reduction in ISP rates. [Imposto Sobre os Produtos Petrolíferos] on both fuels starting next Monday, 20 June.”
Thus, he pointed out, “the tax burden (COI + VAT) is reduced by an additional 1.2 cents per liter of gasoline and an additional 0.4 cents per liter of diesel fuel.”
In the same communiqué, the Treasury reports that “Over the next week, global fuel tax relief through two ongoing measures — a weekly COI review mechanism and a reduction in unit rates of this tax to the equivalent of VAT of 13% — just 22.2 cents per liter of diesel fuel and 26.3 cents per liter of gasoline”, with “to these amounts added the absence of an update to the carbon tax of about six cents per liter.”
According to the government, “the ISP factor for diesel fuel drops to the minimum permitted by Directive 2003/96/EC of 27 October”, adding that “Portugal had already requested the European Commission in April to abolish the application of the minimum limits set by the aforementioned Directive pursuant to Article 19, while the evaluation of the request by the services of the European Commission is in progress.”
The Guardianship also said that “As part of a weekly review of the ISP’s renewal mechanism, which ensures the return of any emergency VAT revenues subject to the prospect of price changes, the situation will be reassessed next Friday, June 24th.”
