The price of oil and the unfreeze of the carbon tax. Portuguese families need the mercy of the state

In Portugal, fuel prices have been rising for several weeks in a row. And it’s about 20 cents away from the peaks reached in June last year. Given the national socioeconomic situation, this represented another struggle in the already troubled Portuguese families.

Just this week, regarding Portugal’s outrageous rent prices, CNN Internacional, quoting Reuters news agency, described Portugal as follows: “The country is one of the poorest in Western Europe, with a minimum wage of €760 per month and more than half The workers earn less than 1,000 euros a month.” The picture is embarrassing.

The national average net salary is 1,044 euros per month. The picture is shocking. Is it really possible to live with this level of monthly income?

Interest rates at the European Central Bank have reached their highest levels since the euro began trading. According to the Organization for Economic Co-operation and Development, 70% of mortgages in Portugal are linked to variable interest rates. Euribor rates eliminate the meager monthly budgets of Portuguese families. The problem is socially painful.

At this point, OPEC+ (the Organization of the Petroleum Exporting Countries and its allies) has reached a 3.6 million barrels per day cut in applicable oil production. In addition, Saudi Arabia decided to increase the cut by another million, starting in July.

But it was announced that the decline in production will extend to the whole of 2024. The goal of the oil exporting countries is to face the decline in the prices of raw materials in the markets. To this end, they reduce the amount of resources available on a global scale. As a result, prices rise and oil companies increase their revenues.

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Meanwhile, the International Energy Agency reported that global oil demand will rise by 2.2 million barrels per day this year. China will account for between 60 and 70 percent of this increase in global demand.

Oil is one of the main drivers of inflation. For example, it is very likely that the positions of OPEC+ and Saudi Arabia will enhance the global inflationary impact of the suspension of the Black Sea Agreement. This international situation is sure to worsen Portugal’s living conditions.

Considering the current external scenario, this is the worst moment for the country to implement the phase-out of the carbon tax. The same logic applies to mitigation measures taken by an ISP. The internal socio-economic situation imposed maximum frugality on the Portuguese. For the majority of families and businesses, fossil fuel use is now limited to strictly necessary quantities. Therefore, the environmental goals that guided the Portuguese government’s decision could be jeopardized

Mercy is required from the Portuguese state.