Portugal: next week starts with sharp drop in fuel prices

Next week brings good news for drivers: a sharp drop in prices is expected, affecting both diesel and petrol at the pumps. New week, new prices: from 10 August, industry forecasts point to a sharp drop in fuel prices, of around 12 cents on diesel and 12.5 cents on petrol, according to the Automobile Club of Portugal (ACP) (source in Portuguese). If the forecasts for next week are confirmed, the average price of diesel will fall to 1.931 euros per litre, while petrol will retreat to 1.855 euros per litre. These figures may still change, the ACP notes, since "this forecast consists of average values based on crude prices at last Thursday's market close", that is, "if there are fluctuations in crude and fuel prices up to the end of this Friday, there may be some variation in prices compared with what is currently forecast". This Friday, regular diesel is costing 2.051 euros per litre, while 95-octane unleaded petrol is at 1.980 euros per litre, according to the average prices published by the Directorate-General for Energy and Geology ( (source in Portuguese)DGEG (source in Portuguese)) (source in Portuguese). According to the same source, these daily average prices "are calculated on the basis of the prices reported by filling stations, weighted by the quantities sold in the latest period for which figures are available, incorporating discounts applied at forecourts such as fleet cards and others". The prices charged to end consumers may vary from station to station, since this sector, and consequently its pricing policy, is liberalised. Fuel prices continue to be heavily affected by the war in the Middle East, with the US, Israel and Iran involved in military attacks in the region. The war has led to the blockade of the Strait of Hormuz, through which 20% of the world's oil and natural gas passes, causing major swings in fuel prices. Since the outbreak of the war in the Middle East, the government has undertaken to apply a new extraordinary and temporary cut in the ISP fuel tax whenever there is an increase in fuel prices of more than 10 cents, in order to mitigate the surge in prices. It is therefore expected that the government will adjust the ISP discount, as has been happening in recent weeks, which may lead to changes in the estimated prices from next Monday.