Portugal Economy Minister urges fuel consumption reduction

Portuguese Economy Minister Manuel Castro Almeida has advised companies and families to reduce fuel consumption to help curb rising energy prices. Speaking in Brussels, the minister stated that the government is dependent on individual decisions to manage demand, noting that lower consumption is the primary way to facilitate price decreases.

While acknowledging the severe impact of energy costs on citizens, Castro Almeida emphasized that the government will not compromise fiscal responsibility or risk a budget deficit to provide further broad subsidies. He argued that maintaining balanced public accounts is essential to prevent rising national debt, which could lead to higher interest rates for families, particularly regarding mortgages.

To mitigate the impact without destabilizing the budget, the government is implementing selective support. This includes extraordinary aid for freight transport and emergency vehicles, as well as continued support for professional diesel used in the agriculture and forestry sectors. The administration aims to ensure fiscal neutrality by returning excess VAT collected through adjustments in the ISP tax.