The price of fuel will increase again this Monday, March 23, a direct consequence of the war in the Middle East with a high impact on consumers’ pockets. A liter of simple diesel will be 16 cents more expensive and gasoline will be 95 nine cents moreaccording to forecasts from the Automóvel Clube de Portugal.
These increases will raise the average price of a liter of diesel above the two-euro mark (around 2.08 per liter) with gasoline reaching 1.94 euros. Please note that these are approximate values and may vary by filling station, distribution brand and location.
The rise in the price of petroleum derivatives is worrying the various sectors of economic activity and also the Portuguese. The president of the ACP, Carlos Barbosa, has already publicly warned that the Government’s response to this crisis is “insufficient” and called for new “immediate” measures to alleviate the impact caused by the war in the Middle East.
Since the beginning of the conflict (February 28), the price of a liter of diesel “it increased by around 45 cents and gasoline increased by 25 cents”, and support in terms of Fuel Tax (ISP) “has been clearly insufficient”, resulting in “just 6.1 cents per liter for diesel and 3.3 cents for gasoline”, he said.
According to the ACP, “As of this Monday, the situation becomes even more evident: the support translates into real savings of just 3.2 cents on diesel and 1.7 cents on gasoline”. For Carlos Barbosa, the sustainability of the national economy and Portuguese families requires a significant reduction in tax revenue collected in ISP and VAT.
The president of the ACP highlights that “the State continues to collect millions in tax revenue through ISP and VAT” (consumption tax) and “the burden continues to fall on taxpayers”.
The Portuguese Farmers Confederation (CAP) also defended that the State’s tax revenue cannot benefit from this situation. According to CAP, even with the discount on the ISP, State revenue will increase by 10% due to the spike in prices.
“The fuel market cannot be regulated, but there can be compensation for farmers who use diesel. When the price increases, the State’s revenue also increases”, said CAP’s secretary general, Luís Mira.
CAP warned that food prices will also skyrocket if the war prolongs. And he also recalled that the conflict has a major impact on fertilizers, as around 25% comes from that region.
With Lusa
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