Portugal to Increase Fuel Tax Discount to €0.25 per Litre Next Week

Portuguese Prime Minister Luís Montenegro announced a series of targeted economic relief measures following a meeting of the Council of Ministers on 17 September 2026. The government plans to increase the total fuel tax (ISP) discount from approximately €0.23 per litre to €0.25 per litre starting next week, while extending the reduction program until the end of the year. The package also includes personal income tax (IRS) cuts and an extraordinary bonus for pensioners, which Montenegro framed as targeted assistance that avoids leaving heavy future liabilities.

Economy Minister Manuel Castro Almeida warned in an interview with CNN Portugal that diesel and petrol prices are set to reach levels never before seen in Portugal in the coming week. Castro Almeida stated that while government measures will mitigate the impact, maintaining balanced public finances and reducing debt remain essential to prevent escalating interest payment obligations.

“The measures that the government announced today are not going to solve the problem, they are going to attenuate the problem, they are going to diminish the problem, which has an enormous dimension.”