Portugal faces fuel price surges and political backlash

Portugal is facing significant social and political tension due to record-high fuel prices. Diesel has reached a historic level of 2.169 euros per litre, while gasoline has seen its largest weekly increase since 2022. These price surges have triggered spontaneous protests across the country, including honking demonstrations on the 25 de Abril Bridge in Lisbon and slow-moving vehicle operations near the Galp refinery in Sines.

Political leaders from the Socialist Party (PS) have criticized the government, alleging that the state is profiting from the crisis. José Luís Carneiro, PS Secretary-General, claimed the government has gained over 1.048 billion euros from increased fuel taxes since April 2024. The PS has proposed measures to reduce fuel costs by 17 cents per litre, including lowering VAT from 23% to 13%, though these proposals were previously rejected by other political blocs.

In response to the rising costs, the Portuguese government has implemented a temporary reduction in the Tax on Petroleum Products (ISP). This measure, totaling approximately 23 cents per litre for both petrol and diesel, was intended to cushion the impact of international market volatility and Middle East conflicts. Despite this intervention, motorists continue to face substantial price hikes compared to previous years.