The Portuguese government denied that it took advantage of rising fuel prices to increase tax revenue. The Minister of Environment and Energy, Maria da Graça Carvalho, assured that the revenue collected from the VAT increase was entirely used to offset the Fuel Tax, meaning there was no fiscal benefit for the State from the fuel price increases.
In the same context, the government decided to reinforce the powers of ERSE (Energy Services Regulatory Authority), reinforcing the regulator's role in overseeing the Portuguese energy sector.
This position of the executive comes in response to criticism pointing to a possible gain for the State with the rise in fuel prices, an issue that has generated public debate about the fiscal policy applied to the energy sector.
