The Minister of Environment and Energy, Maria da Graça Carvalho, announced this Monday, September 14, that the Government is preparing new support for freight transport, firefighters, the social sector and taxis, to compensate for the impact of rising fuel prices. These support measures, similar to those that ended on June 30, will be taken to the Council of Ministers and may take the form of support per vehicle or discount per liter of fuel consumed.
When questioned about the possibility of imposing a fuel price cap, Maria da Graça Carvalho considered it to be an "exceptional and last resort" measure, as it could disrupt market functioning. The minister explained that the Executive maintains as policy helping the sectors that need it most and not providing generalized assistance, using additional VAT revenue to reduce the ISP. The Government has already allocated around one billion euros through the ISP discount, estimating that this amount will reach 1.3 billion euros by the end of the year.
The minister spoke to journalists at the inauguration of the Nãm Fungi Factory in Odivelas, Lisbon, a unit that transforms coffee grounds into mushrooms. Maria da Graça Carvalho attributed the rise in diesel to a shortage of refining capacity worldwide, pointing to the conflicts in the Gulf and between Ukraine and Russia, as well as the closure of around 10 refineries in Europe in recent years.
The minister warned that the continuation of this situation could cause a shortage of refined products, with particularly relevant impacts for peripheral countries and outermost regions. In the medium term, she advocated for the decarbonization of transport through electrification and the use of renewable fuels, such as biofuels and sustainable aviation fuels. Regarding a possible reduction in fuel VAT, she referred the decision to the prime minister and the finance minister.
