Diesel in Portugal hits record high, Spain introduces new discount

Portuguese diesel prices have soared to a record high, while Spain has introduced a new discount on fuel prices. The Portuguese National Association of Fuel Retailers (ANAREC) predicts a slight rise in diesel prices at the start of next week, despite a government-imposed discount on the Petroleum Products Tax (ISP). The new ISP rates raise the tax on petrol by about one cent per litre, resulting in a five-cent reduction in 95 unleaded petrol prices, instead of the previously forecast six-cent decrease.

The diesel tax discount, however, is minimal at around 0.10 cents, leaving the forecasted four-cent rise in diesel prices largely unchanged. Consequently, a litre of diesel is expected to reach €2.15 from Monday onwards, breaking a historic record. ANAREC president João Durão claims the government is deceiving the Portuguese people, stating they profit from rising fuel prices.

In contrast, Spain's government has slashed its fuel prices by 20 cents per litre to counter the impact of rising prices. This move has transformed Spain into the second-cheapest destination for diesel in the European Union, with Malta now offering the lowest prices at €1.34 per litre of petrol and €1.21 per litre of diesel. Spain now has the second-cheapest diesel in the EU, at €1.795 per litre.

Meanwhile, Finland sees drivers paying the most for diesel at €2.477 per litre, followed by the Netherlands, Denmark, and Germany. The Middle East crisis stemming from the recent war between Israel and the US and the blockade of the Strait of Hormuz has driven oil and fuel prices to unprecedented highs, with crude oil prices surging above 100 dollars per barrel.