Portugal faces record diesel prices and new climate resilience programs

Portugal is facing several economic and environmental developments. Diesel prices have reached a historic high, with BP reporting 2.324 euros per liter. This surge has prompted warnings from the construction sector regarding project viability and calls for tax reductions. In response to rising fuel consumption, which has increased by 4% to 6%, Environment Minister Maria da Graça Carvalho has urged citizens and institutions to economize and suggested that government support should be targeted at vulnerable sectors like agriculture and transport rather than being generalized.

On the environmental front, the government has approved the PRO NAT. URBE program, a strategy through 2035 to increase urban green spaces and combat extreme heat. Five pilot projects are currently underway in Évora, Beja, Vila Real, Guimarães, and São João da Madeira. Additionally, water reserves in the Algarve are reported to be higher than in 2025, though concerns remain regarding scarcity in the North and Center regions.

In Madeira, the Socialist Party (PS) is advocating for a regional legislative project to implement directed grazing as a strategic tool for forest management and fire prevention, criticizing previous government inaction.