Galp has left a warning about the consequences of ending discounts on the petroleum and energetic products (ISP). The company considers that the difference in fuel prices between Portugal and Spain can get worse with the new tax measure, leading more drivers to supply in the neighboring country and removing tax revenue to the Portuguese State.
According to News to Minuto, Galp’s executive co-president, João Diogo Silva, said the situation is particularly worrying in the border range of about 50 kilometers, where many motorists already choose to cross the border to fill the deposit in Spain.
Price difference can increase
Currently, the difference between prices practiced in both countries rounds eight to ten cents per liter, depending on fuel.
According to the same responsible, this disparity may increase if the European Commission’s recommendation is completed to eliminate the support in force in ISP.
“When you think of tax revenue, you need to think of all angles. The impact of more people fueling in Spain can be higher than the amount collected with a tax climb,” said João Diogo Silva, quoted by the publication.
Government evaluates recommendations from the European Commission
The European Commission recently urged the Portuguese government to end discounts on ISP, considering them incompatible with community rules.
The Minister of Economics and Territorial Cohesion, Manuel Castro Almeida, admitted this week that there may be “adjustments” in the price of fuels.
According to the same source, the Galp leader also expressed concern about the terrestrial entry of products that do not fulfill all tax rules in Portugal, noting that Spain applied control measures that resulted in the recovery of over 2,000 million euros in revenue.
Investment in Sines and new concept of stores
At a time when these discussions take place, Galp is also investing more than 650 million euros at the Sines refinery. The goal is to produce renewable fuels such as HVO, sustainable aviation fuel (SAF) and green hydrogen.
“It is essential to understand the importance that this type of investment has to keep the country competitive, sustainable and with supply safety,” said João Diogo Silva, according to the same source.
In addition, the company inaugurated the first service station with the Goody concept, integrated into an image and asset renewal plan that should cover 250 stores in the Iberian Peninsula. It is expected to open a new station in Lisbon by the end of the year and another in Porto at the beginning of 2026.
According to, Galp insists that the government should well evaluate the impact of the decision on ISP, otherwise losing more revenue to Spain than the one that would raise with the end of discounts.
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