Carbon tax raised to €74.429/t CO2 as impact of high crude price eases

The carbon tax in effect in Portugal has been updated again, according to a statute that came into force today, increasing it to €74.429 per tonne of carbon dioxide (CO2) and so limiting anticipated decreases in the retail prices of fuel this week, in the wake of the recent falls in crude oil prices. The decree, which was published on Sunday in state gazette Diário da República, marks a continuation of the decision to reverse the previous freeze on the tax, so ‘limiting the decline in diesel and petrol prices’ that would otherwise have taken effect this week. The reality is that, as a result, price reductions for fuel, touted over the weekend, were barely noticed by consumers.