fuel Prices Set to Rise: Consumers Weigh Immediate Top-Ups Against Tomorrow’s Tax Changes
Lisbon, Portugal – October 23, 2025, 16:21 – Portuguese drivers face potential fuel price increases starting tomorrow, October 24, 2025, as teh government prepares to eliminate a discount on the Tax on Petroleum and energy Products (ISP) and update the carbon tax. The changes, detailed in the State Budget proposal for 2026 (OE2026) analysis by the CFP, are projected to inject over 1.132 billion euros into state coffers.
The impending tax adjustments will impact all motorists,potentially increasing the cost of filling up. According to CFP projections, removing the ISP discount and fully updating ISP rates on January 1, 2026, will generate an estimated 873 million euros in additional revenue.Simultaneously, an update to the carbon tax is expected to yield a further 47 million euros. These direct tax increases will be compounded by a rise in Value Added Tax (VAT) revenue, estimated at 212 million euros, as VAT is levied on the overall price of fuel.
the combined effect of these measures-the ISP discount removal, carbon tax update, and subsequent VAT increase-is forecast to deliver an additional 1,132 million euros to the State. This comes as Portugal’s fuel prices are already above the EU average due to a comparatively higher tax burden, according to recent reports. Drivers are now considering weather to fill their tanks today to avoid the anticipated price hike or wait and assess the actual impact tomorrow.
