The price of diesel has risen much more than that of gasoline – and the reason “is very simple”. And also the climate emergency.

It is one of the issues that most affects the daily lives of Portuguese people, and beyond: the unusual increase in fuel prices, since .

Also this Monday, many gas stations in Portugal have all options above R$2 per liter, the result of an increase of 12.3 cents in diesel and 7.4 cents in gasoline.

Diesel is rising again more than gasoline. And it is again more expensive than gasoline. In , economist Pedro Sousa Carvalho explains this difference and leaves four other explanations about the current scenario.

Diesel increases much more
Since the conflict in Iran reached this scale, diesel has already risen by more than 20% (around 40 cents) in Portugal; gasoline rose 10%. The reason is “very simple”: Europe has a deficit in diesel production and a surplus in gasoline production. In other words, it produces up to 40% more gasoline than is consumed on the continent; but, in diesel, there is no self-sufficiency and it is necessary to look for it on other continents.

Gasoline also increased
Because the raw material is the same. The barrel of oil, which originates these two fossil fuels, is more expensive. And it’s more expensive for both.

Big rise in diesel fuel in Europe
In Europe, we cannot refine diesel in the same way as we refine gasoline. And we have an “aggravating factor”: 30% of the diesel that Europe purchased came from the Persian Gulf countries, which are unable to sell all of their products.

The diesel problem
The big rise in diesel causes much more damage than the rise in gasoline; it is a “much greater damage to the economy”. Here too the justification is simple: almost all economic activity in Portugal – transport, logistics, agriculture, etc. – is powered by diesel. In January this year, 76% of road fuel consumption was diesel.

Lower taxes like Spain
The Government of Spain reduced VAT on fuel, electricity and natural gas from 21% to 10%. Can Portugal do the same? Pedro Sousa Carvalho warns that there are several perspectives that must be remembered: Portuguese public accounts are better, there is a budget surplus, and the public debt is higher in Spain; there are financial conditions for this – but it does not mean that the Government will do it; is that Portugal has just emerged from a climate emergency, related to bad weather in January; Furthermore, it is necessary to act with caution, especially because (among other unknowns) the duration of the war is not known.

The price of diesel has risen much more than that of gasoline – and the reason “is very simple”. And also the climate emergency.

It is one of the issues that most affects the daily lives of Portuguese people, and beyond: the unusual increase in fuel prices, since .

Also this Monday, many gas stations in Portugal have all options above R$2 per liter, the result of an increase of 12.3 cents in diesel and 7.4 cents in gasoline.

Diesel is rising again more than gasoline. And it is again more expensive than gasoline. In , economist Pedro Sousa Carvalho explains this difference and leaves four other explanations about the current scenario.

Diesel increases much more
Since the conflict in Iran reached this scale, diesel has already risen by more than 20% (around 40 cents) in Portugal; gasoline rose 10%. The reason is “very simple”: Europe has a deficit in diesel production and a surplus in gasoline production. In other words, it produces up to 40% more gasoline than is consumed on the continent; but, in diesel, there is no self-sufficiency and it is necessary to look for it on other continents.

Gasoline also increased
Because the raw material is the same. The barrel of oil, which originates these two fossil fuels, is more expensive. And it’s more expensive for both.

Big rise in diesel fuel in Europe
In Europe, we cannot refine diesel in the same way as we refine gasoline. And we have an “aggravating factor”: 30% of the diesel that Europe purchased came from the Persian Gulf countries, which are unable to sell all of their products.

The diesel problem
The big rise in diesel causes much more damage than the rise in gasoline; it is a “much greater damage to the economy”. Here too the justification is simple: almost all economic activity in Portugal – transport, logistics, agriculture, etc. – is powered by diesel. In January this year, 76% of road fuel consumption was diesel.

Lower taxes like Spain
The Government of Spain reduced VAT on fuel, electricity and natural gas from 21% to 10%. Can Portugal do the same? Pedro Sousa Carvalho warns that there are several perspectives that must be remembered: Portuguese public accounts are better, there is a budget surplus, and the public debt is higher in Spain; there are financial conditions for this – but it does not mean that the Government will do it; is that Portugal has just emerged from a climate emergency, related to bad weather in January; Furthermore, it is necessary to act with caution, especially because (among other unknowns) the duration of the war is not known.