The discount was justified by the Portuguese executive as an extraordinary and temporary response to the conflict in the Middle East and the expected increase of more than 10 cents in the price of diesel.
The European Commission warned this Tuesday that it will “monitor closely” the budgetary impact of the discount that the Portuguese Government will give on the Tax on Petroleum and Energy Products (ISP) for diesel, taking note of the adoption of such a measure.
“As part of the 2025 country-specific recommendations, the Council recommended that Portugal reduce global dependence on fossil fuels, particularly in the transport sector, namely through the gradual elimination of fossil fuel subsidies. Therefore, the implementation of measures such as the reduction of ISP unit rates, as well as their impact, will be closely monitored and evaluated in the context of the European Semester”, said an official source from the community executive in a written response sent to the Lusa agency.
According to the institution’s spokesman for the Economy, Balazs Ujvari, the European Commission “will publish its assessment in the spring package of the 2026 European Semester”which is expected to be released on June 3, after the updated macroeconomic forecasts are published on May 21.
At both times, the institution will evaluate the measures adopted to alleviate “the increase in energy pricesa”as well as those currently underway to “mitigate storm damage” of the beginning of the year in the country.
The person responsible pointed out that Portugal “you do not have to notify the Commission to proceed with the temporary and extraordinary reduction of ISP unit rates”, but assured that Brussels “regularly monitors developments in budgetary policy in Member States and takes note of these types of announcements”.
“Like all other Member States, Portugal will have to report in its 2026 annual progress report fiscal policy measures with an impact between 2023 and 2026,” he added.
On Monday, the Minister of Finance, Joaquim Miranda Sarmento, said he trusts that the European Commission “don’t have any objections” discount on diesel oil ISPfor being “extraordinary and temporary”
The discount now announced comes after sector forecasts also released on Friday, that the increase in the price of diesel should, this week, be greater than 10 cents per liter.
