Exclusive: The government will extend the fuel tax cut for another month. See discounts

The limitation of the ISP is planned until the end of August. CNN Portugal has learned that it will be extended until the end of September

The government will extend the reduction in the tax on petroleum products (ISP) for another month, while maintaining the current cuts in final fuel prices, CNN Portugal has learned.

The measure, introduced since May to dampen the rise in final fuel prices, which have risen dramatically since the Russian invasion of Ukraine – with a greater focus on diesel – was initially announced only in May and June, and was subsequently extended to July and August. . Now, it will be extended for another month, thus applying for five months.

The combined effect of the announced measures will remain as they were applied in the past two months, and therefore the reduction in final prices will be similar. In other words, what the Ministry of Finance announced at the end of June will remain as follows: “The reduction in the tax burden will be 28.2 cents per liter for diesel and 32.1 cents per liter for gasoline,” he added.“

Simple diesel, which is sold on average in mainland Portugal at 1.885 euros per liter (prices this Tuesday, according to the Directorate General of Energy and Geology), It will cost €2167 today if the ISP cut is not applied.

Simple petrol 95 that sells for an average of 1,781 euros per liter, It will cost 2.102 euros per liter Without ISP limitation.

Finance Minister Fernando Medina announced in May that the tax cut is temporary, as a way to cool high fuel prices as a result of the war in Ukraine. At that time, it could only be applied for two months, a period that has now been extended to five months.

It should be noted that the greatest pressure on fuel is felt in diesel, the price of which is about 10 cents more than gasoline, which is an unprecedented phenomenon. So much so that gasoline is now a little cheaper than it was before the invasion, which is only happening because of the tax cut. The final price for the diesel is about 22 cents more expensive than it was before the invasion, and would be about 50 cents more expensive without the ISP cut.