Portugal extends 10-cent agricultural diesel discount and adds €13 million for fisheries

Cabinet decision in Bragança

The Portuguese government approved a decree on 9 September 2026 extending the extraordinary discount of 10 cents per liter on colored agricultural diesel through 31 December 2026. The measure was adopted during a decentralized Council of Ministers meeting held in Bragança and amends Decree-Law 80-A/2026, which was originally published on 31 March 2026 to mitigate fuel cost increases tied to conflict in the Middle East. The initial 10-cent concession expired at the end of June, leaving farmers without the direct fuel discount for over two months. Eligible applicants include agricultural and forestry operators, with eligibility capped at 15,000 liters per vehicle. The direct expenditure for extending this agricultural diesel discount exceeds 15 million euros, funded directly through the State Budget.

Fisheries funding and energy relief measures

In the same executive meeting, the Council of Ministers approved a 13 million euro financial package targeted at the fishing sector to offset elevated operational fuel costs. Funding for the fisheries measure is managed through MAR2030, an operational program that distributes resources from the European Maritime, Fisheries and Aquaculture Fund (FEAMPA). The government also extended the 25-euro subsidy for the solidarity gas bottle through the end of 2026 and preserved energy assistance mechanisms for volunteer firefighters and private social solidarity institutions. Prime Minister Luís Montenegro confirmed that overall fuel prices across the economy benefit from a discount of 0.23 euros per liter through fuel tax adjustments. Montenegro added that cumulative reductions under the ISP fuel tax framework will total 1,300 million euros by the end of the year.

Sector criticism and competitive gap with Spain

Agricultural associations criticized the renewed diesel support as insufficient to meet escalating operational expenses. The Confederation of Portuguese Farmers (CAP) categorized the 10-cent discount as a symbolic measure that leaves domestic producers at a disadvantage against foreign competitors. CAP Secretary-General Luís Mira estimated that Portuguese agriculture has absorbed 60 million euros in additional costs due to fuel and fertilizer price increases caused by international instability. Mira reported that Portuguese producers received 6 million euros between March and June and projected that an identical amount will be disbursed by year-end, creating a total allocation of 26 million euros. In contrast, Spanish authorities have distributed 1,100 million euros to Spanish agricultural producers facing similar cost increases.

We have 40 times less financial support.

Opposition demands and economic pressures

Political opposition parties in the Assembly of the Republic have pushed for a temporary reduction in the value-added tax applied to fuel products. The government maintained that fiscal constraints prevent deeper tax breaks beyond the current scheme. Luís Montenegro presented the diesel measure during parliamentary debate on a motion of censure before formalizing it in Bragança. CAP warned that the widening subsidy gap between Lisbon and Madrid threatens Portuguese market share, as Spanish produce enters the domestic supply chain with lower production costs. High distribution and fuel expenses continue to exert upward pressure on consumer prices across Portuguese grocery stores.