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Increased fuel prices

ON JANUARY 19, main oil producers in Portugal increased the price of fuel by three cents. This increase reflects the rise in the Imposto Sobre Produtos Pretolíferos (ISP) tax on oil producing products determined by the government.

On January 18, the Executivo published the decree, altering the rates of the ISP concerning petrol and diesel prices. Unleaded petrol went up from 53.295 cents to 55.795 cents a litre, diesel went up from 31.441 cents to 33.941 cents a litre, an increase of 2.5 cents. Add to these values IVA of 21 per cent and you have an increase of three cents a litre on fuel.

For 2006, the government is planning a further increase of 2.5 cents a litre, according to the guidelines of the Programa de Estabilidade e Crescimento (PEC), the programme of stability and growth, which was delivered at the European Commission.

Already, the increase in ISP will create an increase to fuel prices at Galp and Repsol petrol stations. Their unleaded 95 petrol prices will go up to 1.252 euros a litre and diesel 1.026 euros. BP prices of unleaded 95 will rise to 1.251 euros a litre and diesel will now cost 1.025 euros a litre.