The blockage of the Strait of Hormuz is expected to increase diesel prices by up to 20 cents and gasoline prices by about 5 cents per liter. Montenegro allows temporary discount on ISP.
The price of diesel is expected to register one of the biggest increases in recent years next week, which could increase between 15 and 20 cents per literfollowing the attack on Iran and , which interrupted oil and gas exports from the Middle East.
According to sources in the oil sector consulted by , the forecast is based on the average price of refined products in the last two days, compared to the average of last week. If the trend continues until the end of the week, this could be the biggest weekly increase since March 2022when, after Russia’s invasion of Ukraine, diesel fuel rose by around 14 cents per liter.
Gasoline is also expected to become more expensive, but in a more moderate way, with increases estimated at around five cents per liter.
ANAREC had already anticipated an increase of more than 10 cents per liter, but based only on Monday’s price. The trend worsened after Iran officialize the closure of the Strait of Hormuzone of the world’s main transportation routes for petroleum products.
Europe has faced increased vulnerability in diesel since 2022, when it drastically reduced imports from Russia following the war in Ukraine. Part of these needs began to be met by suppliers in the Middle East, which are now being affected by the conflict in Iran.
Montenegro admits tax discount
The Prime Minister admitted today that the Government could move forward with a extraordinary and temporary discount of the Tax on Petroleum and Energy Products (ISP) to compensate for an increase in fuel prices if there is an increase of 10 cents compared to this week’s value.
This position was conveyed by Luís Montenegro in the fortnightly debate in parliament, in response to an intervention by the secretary general of the PS, José Luís Carneiro, on the economic consequences of the North American and Israeli intervention in Iran.
“Within the guidance given to several members of the Government not to devalue the effects that the conflict [com o Irão] can have on our economic dynamics, we are in a position to say that one of these effects could turn out to be the increase in fuel prices”, he began by pointing out the executive leader.
In this sense, according to Luís Montenegro, if there is a rise in the price of gasoline and diesel of more than 10 cents in relation to this week’s value, in this scenario, “the Government will introduce an extraordinary discount and temporary payment from the ISP to compensate for the additional ICMS collection”.
“In this way, all this additional money is returned to Portuguese people and companies”, added the prime minister.
