Prices for petrol and diesel set to decrease
Fuel Prices in Portugal Set to Drop Slightly
Good news for motorists in Portugal as fuel prices are expected to decrease starting next week. According to the Automóvel Club de Portugal (ACP) and the Directorate General of Energy and Geology (DGEG), the price of a litre of petrol will drop to €1.686, while diesel will cost €1.594.
As of this Thursday, the average cost of a litre of petrol stands at €1.691, while diesel is priced at €1.594. These figures represent a slight decrease from recent peaks, with diesel forecasted to reach about €1.608/litre and petrol about €1.693/litre earlier in July before easing in mid-July.
The expected near-term trend indicates a slight decrease in prices: petrol dropping by about 0.5 cents per litre and diesel by about 1.5 cents, based on industry forecasts and data from Portugal's DGEG.
Several key factors influence these prices. The government has implemented extraordinary tax reductions on petroleum products, including cuts to the Tax on Petroleum Products (ISP) and adjustments linked to VAT. These measures help moderate final consumer prices despite global market fluctuations.
Fuel prices closely follow global crude oil prices and refined product costs. Recent price changes reflect shifts in these international markets. The euro to dollar exchange rate also impacts costs since crude oil trades in dollars. Changes over the preceding week influenced recent adjustments.
Market supply and demand dynamics, although not detailed explicitly in the sources, play a critical role. General economic and geopolitical factors affecting supply chains and demand also impact fuel prices.
Compared to other EU countries, Portugal's petrol price (~€1.69/litre) is slightly above the EU weighted average (~€1.63/litre) but lower than countries like Denmark or the Netherlands.
It's worth noting that end-consumer prices of fuel may vary depending on the chosen gas station.
[1] Automóvel Club de Portugal (2025). [Weekly Fuel Price Report]. Retrieved from https://www.acp.pt/pt/informacao/noticias/2025/07/relatorio-semanal-de-precos-de-combustiveis
[2] Directorate General of Energy and Geology (2025). [Weekly Fuel Price Report]. Retrieved from https://www.dgeg.pt/pt/energia/combustiveis/precos-de-combustiveis
[3] European Commission (2025). [EU Fuel Price Report]. Retrieved from https://ec.europa.eu/energy/en/topics/petroleum-products/fuel-prices
[4] Eurostat (2025). [EU Fuel Price Statistics]. Retrieved from https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN20250721-1
[1] The decreased fuel prices in Portugal may further stimulate the automotive industry, encouraging domestic transportation, and potentially boosting economics.
[2] Since fuel prices significantly impact the automotive industry's finance sector, the slight drop in fuel costs could offer an opportunity for increased investments in Portugal's transportation industry.
