In stark contrast to what is happening on the global scene, Portugal is being battered at the pumps today, with marked price hikes and more to follow.
After the honeymoon moment over Christmas when prices actually fell to below a euro for diesel in some parts of the country, the government’s new “green tax” regime has blown all the good news away.
As president of the country’s fuelsellers’ association commented last week, “this isn’t a green tax at all”. It’s much more of a “tremendous shock”, João Durão elaborated.
For now fuel stations to avoid are those of GALP, which has brought in the full force of the new green tax, writes Negócios online.
Hikes at BP and Repsol are lower for the time being – but these too will be increasing in the near future.
Increases vary from 2.5 to 4 cents a litre and came into effect from midnight.
Meantime, there is confusion over increases in the cost of biofuel components of both diesel and petrol.
Negócios online explains this morning that the fuel sector fears the 2% increase will add another two cents to prices at the pumps. The government disagrees and thus both sides are engaged in a “war of words” which, as yet, sees no immediate conclusion.
In fact, Negócios online points to the need for new licences to be emitted to allow the fuel sector to import biofuels that are not available in Portugal. Thus “prices have not reflected this impact”, says the website. “But they will later.”
The underwhelming news comes when in UK, for instance, fuel prices are at their lowest since 2009.
