The government announced a reduction in the discount on the Internet service provider due to the drop in fuel prices

The government will Less ISP discount From this Tuesday. An action taken as a result of lower fuel prices set the tax cut at 28.3 cents per liter for diesel fuel and 26.2 cents per liter for gasoline.

After all, this reduction in the discount translates into an increase of about 0.1 cents per liter of diesel and about 5 cents per liter of gasoline for the end consumer.

Although this price increase is not a surprise, Antonio Compredo, Secretary General of the Portuguese Association of Oil Companies (APETRO), told CNN Portugal that this “reduced reduction” is occurring due to lower fuel prices, especially gasoline. .

However, the mechanism implemented by the government to obtain the discounts means that lower fuel prices lead to an increase in the tax on petroleum products (ISP), due to lower revenue from VAT.

The final price of the fuel is up to the operators to decide, as Antonio Compredo recalls, “the market is free, and in any case, the practice is that being a consumption tax, this upward adjustment is immediately reflected in the price to the consumer.”

The Ministry of Finance announced, on Tuesday, that the Internet service provider’s discount will decrease this month by 0.1 cents per liter of diesel and 4.4 cents per liter of gasoline.

The ISP’s discount equivalent to the 13% reduction in the value-added tax rate was scheduled to last until September 4, but was then extended until the end of the year, within the scope of the government’s aid package for families due to the price increase. He pointed out that “the modernization of the carbon tax will remain pending until the end of the year.”

According to the authority, “the ISP discount applied to colored and premium diesel, with applications in the primary sector (agriculture, aquaculture and fisheries)” will remain “unchanged at 6 cents a liter until the end of the year.”