The Government is preparing a new fuel support package for the freight transport, taxi, fire brigade corporations and social sector institutions, resuming mechanisms that had ended on 30 June. The Minister of Environment and Energy, Maria da Graça Carvalho, confirmed that the support may take the form of a fixed amount per vehicle or a direct subsidy per litre of fuel consumed. The final proposal should be presented and voted on at a Council of Ministers meeting, following the rules applied previously.
The Portuguese Firefighters League warned that the rise in fuel prices is causing a serious impact on the budgets of the corporations, with associations at imminent risk of default on salary payments. This situation justifies the urgency of the measures, which come following the announcement made by the Prime Minister, Luís Montenegro, who had referred the decision on extraordinary aid for these sectors to this week's government meeting.
Maria da Graça Carvalho ruled out the possibility of administratively fixing maximum prices, classifying it as an exceptional and last resort measure. The minister stated that monitoring of retail prices takes place weekly and that the Executive will follow the situation day by day. Regarding the reduction of VAT on petroleum products, the issue was referred to the Prime Minister and the Ministry of Finance, with any tax change being subject to the European VAT directive.
The rise in diesel is attributed to the structural shortage of international refining capacity, caused by conflicts in the Middle East and Ukraine and the closure of around ten refineries in Europe in recent years. The State has already channelled around one billion euros through the reduction of the Excise Duty on Petroleum Products, with this amount expected to reach 1.3 billion euros by the end of the year. Brent crude reached 108.03 dollars per barrel on Monday, reflecting a rise of 3.25 percent.
