Portugal's fuel tax rise sparks criticism and regional relief measures

Portugal's central government has faced criticism from Socialist Party Secretary‑General José Luís Carneiro for raising fuel taxes while cutting corporate tax, a move he says costs the state about €4 billion a year and burdens consumers and small businesses. Carneiro called for clarification on potential VAT hikes for restaurants and urged the government to maintain the 13% rate introduced in 2015.

In contrast, the Azores regional administration announced a further reduction of the regional fuel tax (ISP) by 8 to 13 cents per litre for gasoline and diesel, alongside a package of measures to ease the impact of higher fuel prices on households, businesses, agriculture and fisheries. The regional plan also includes temporary subsidies for agricultural diesel, food and health aid for low‑income families, and support for employment stability.

Both actions highlight the tension between national fiscal policy and regional efforts to mitigate the cost‑of‑living pressures caused by rising energy prices in Portugal.