Portugal sets red lines for Sines refinery deal and probes slow fuel price decline
Environment Minister Maria da Graça Carvalho laid out non-negotiable conditions for the Galp–Moeve merger and ordered an investigation into why pump prices have not followed the sharp drop in crude.
Government draws red lines on refinery merger
Portugal will use every legal instrument available, together with its 8.24% stake in Galp, to ensure the Sines refinery stays on national soil and that Portugal remains its priority supply destination during any energy crisis. Environment and Energy Minister Maria da Graça Carvalho set out those two 'red lines' during a parliamentary hearing requested by the Portuguese Communist Party (PCP) on 1 July 2026. Because the majority shareholders of the Spanish group Moeve (formerly Cepsa) – the Abu Dhabi sovereign fund Mubadala and the US-based Carlyle Group – operate outside the European Union, the government believes special strategic-asset legislation can be invoked to enforce the conditions.
A Galp nunca nos falhou.
The minister acknowledged that the initial timetable for closing the deal, originally targeted for the end of July 2026, is likely to slip because several ministerial and shareholder decisions are still outstanding. Finance Minister Joaquim Miranda Sarmento is coordinating the legal work with several law firms to design different scenarios.
Workers’ commission warns of lost control
The workers’ commission (CCT) of Galp argues that the planned new entity, in which Galp would hold only 20% and Moeve the majority, amounts to an effective loss of national control over a critical asset. It warns that the operation threatens jobs and the country’s fuel autonomy, especially in an unstable geopolitical environment. The commission has accused the executive of inaction.
Fuel price investigation requested by government
During the same hearing Carvalho announced that the government had asked the National Energy Sector Entity (ENSE) to examine why retail fuel prices have not fallen at the same pace as crude oil. The trigger was the US–Iran ceasefire agreement that eased fears over the Strait of Hormuz, leading Brent crude to shed nearly $30 per barrel and trade just above $70 on 1 July. Yet pump prices remain significantly higher: diesel was about 14 cêntimos per litre above the level recorded in the first week of March, and petrol was 17 cêntimos higher, even after a tax discount (3.12 cêntimos on petrol, 2.5 cêntimos on diesel) aimed at neutralising the government’s VAT windfall when prices rise.
Não tem razão de ser.
The minister argued the divergence makes no sense and said the executive wants to understand exactly why it is happening.
Industry pushes back on the crude-to-pump narrative
The Portuguese Association of Fuel and Lubricant Companies (EPCOL) insisted there is “nothing to hide.” Secretary-General António Comprido pointed out that daily pump prices are already reported to the Balcão Único da Energia platform and stressed that pump prices follow refined-product markets, not directly the crude market. The crude price influences refined products only in the medium term, he said, and the two are separate markets.
- Gasóleo
- 14 cêntimos/litro
- Gasolina
- 17 cêntimos/litro
Timeline of key events
- US and Israeli forces attack Iranian targets, raising fears over Strait of Hormuz closures and triggering a fuel-price surge.
- Parliamentary hearing: Minister Carvalho sets red lines for the Galp-Moeve deal and requests ENSE to investigate fuel prices.
- Original target date for concluding the Galp-Moeve merger, now expected to face delays.
The government’s stance marks a toughening from the enthusiasm Carvalho showed in January, when she welcomed the creation of a new Iberian oil giant. Her tone has since aligned with the more cautious position of the Economy Ministry. The outcome of the Galp–Moeve negotiation is now expected to be delayed beyond the original July deadline.
