Fuels in Portugal will continue with a differentiated behavior next week. Diesel, the most used fuel in the country, is expected to rise by five cents, while gasoline is expected to fall by five cents. A market source told ECO that diesel and gasoline quotations follow their own dynamics and are not limited to following Brent, emphasizing that quotations are extremely volatile. These trends may still change to take into account the Brent closing and currency market behavior.
Since the coordinated attack by the United States and Israel on Iran, which led to the spread of conflict across the Middle East and the closure of the Strait of Hormuz, diesel has accumulated an increase of 47.4 cents and gasoline of 39 cents, not counting next week's forecasts. This week, diesel rose 7.5 cents and gasoline rose eight cents, which represented the largest increase since July 20 in the case of diesel and the largest in over three years in the case of gasoline.
The Executive refuses to set fuel prices and, despite not profiting from the increase due to the mechanism for returning the ISP corresponding to the VAT increase, the reduction in fuel subsidies allowed a slack of 804 million euros, the cost of the new pension bonus and the announced income tax cut. The PS's Secretary-General, José Luís Carneiro, accused the Government of making money from the increase, which was denied by the Environment Minister, Maria da Graça Carvalho, who guaranteed that the Executive is not profiting from the crisis.
Brent futures contracts are down 3.42% to $104.12 per barrel but are heading to close the week with a 10% increase, the most significant since July 17. Senior US officials have reportedly warned President Donald Trump that the war could continue until the end of his term in January 2029, while Iranian leaders are determined to continue fighting, viewing the conflict as an existential threat.
