Fuel prices at pumps back to where they were ‘pre-war’

Government measures to wrestle back price increases still in force

Drivers will be noticing that the price of fuel at the pumps is now edging back to exactly where it was in February, before Russian invaded Ukraine. This is because the price of a barrel of (Brent) crude has fallen below the symbolic 100 dollar benchmark.

How long the relatively improved costs will stay where they are, however, is unclear.

The return to pre-war prices has much to do with two measures introduced by the government (to reduce what otherwise would have been astronomic increases). The executive suspended the charging of its ‘carbon tax’, and reduced its ISP fuel tax to the equivalent of bringing down IVA (VAT) on fuel from 23% to 13%.

Both these measures remain in place only until August 31.

Explain reports, without them, diesel at the pumps would be 28 cents per litre more expensive; petrol 32.1 cents per litre more.

Adding further stress to the unknown, OPEC (the organisation of petroleum exporting countries) has already agreed a cut in output next year, which, says Correio da Manhã tablolid is likely to lead to higher prices…

natasha.donn@portugalresident.com