Government reduces discount on fuel tax (ISP) in May

02.05.2023

The measures to reduce the increase in fuel prices remain in force during the month of May, but with changes. The government has decided to reduce the discount on the Tax on Petroleum Products (ISP) of fuels in May, and will also proceed with the gradual unfreezing of the update of the carbon tax. 

During the month of May, ISP discounts will decrease from 32.8 cents to 30 cents per liter of diesel and from 34 cents to 31.6 cents per liter of gasoline.

Agricultural diesel maintains the reduction of 6 cents per liter in ISP.

In a statement, the government explains that the reference price of diesel and gasoline is currently below the price that justified the initial measures to reduce the increase in fuel prices. The Government also mentions that fuel consumption in the first quarter of 2023 reached a record of the last decade, and that, in addition, fuel taxation in Portugal is significantly below the weighted average of the Eurozone.

The value of the discount on the tax burden (ISP+VAT) must be identified in the respective invoices, in an updated form, as provided in Decree-Law No. 57-C/2022, September 6.

Source: Government Portal