The government expects fuel prices to fall, next week, by approximately 0.12 euros per liter for diesel, and 0.04 euros per liter for gasoline, according to estimates by the Executive Authority released on Friday, April 1, at a time when oil prices are increasing. Global markets are trading sharply lower, with weekly losses exceeding 10%.

Despite the drop in VAT revenue represented by this estimated drop in fuel prices, the government kept the ISP tax rebate of €0.047 per liter of diesel, and €0.037 per liter of gasoline. The ‘discount’ mechanism at the government’s ISP involves a reduction in the rate payable in the opposite cycle as VAT revenue increases, which is naturally higher when the rate is higher.

“According to the above weekly review mechanism, this will increase ISP rates by 2.1 cents in the case of a liter of diesel and 0.3 cents in the case of a liter of gasoline. In the current context, the government has chosen to defer this adjustment for the moment when the ISP is curtailed by applying the formula, As happened last week,” according to the statement issued by the executive authority.

“The government has therefore decided, through the decree published today, to keep the ISP’s temporary deduction of 4.7 cents per liter for diesel and 3.7 cents per liter for gasoline, with the formula applied again next week with corresponding adjustments,” he concludes.

Brent crude, Europe’s benchmark, was trading at $105 a barrel on Friday afternoon, while WTI was trading at $99, down 13% from selling prices on March 25. You Closures in the Chinese city of Shanghai due to the outbreak of the Corona virus and ad The United States dumps one million barrels of oil per day Contribute to price pressure.