ISP fuel tax discount shrinks on 9 November: prices will fall 2.2 cents less for diesel and 3.1 cents less for petrol
The government is cutting the discount on ISP, the tax on petroleum products, which has been in place since March. Portaria 496-A/2026/1 was published in the Diário da República on the evening of 6 November and takes effect on the mainland on Monday, 9 November. The discount on diesel will be €92.01 per thousand litres, down from €109.94 this week, and on petrol €39.14, down from €64.60 (Diário da República).
Per litre, that is 1.8 cents on diesel and 2.5 cents on petrol, or about 2.2 and 3.1 cents with 23% VAT. That is how much smaller Monday's price fall will be. The motoring club ACP had forecast that diesel would get 11 cents cheaper and petrol 12.5 cents, but its estimate did not take the new discount into account (ECO). If the forecast is right, a litre of diesel at the pump will be about 9 cents cheaper and a litre of petrol about 9.5 cents cheaper.
The government says it made the decision because prices are expected to fall next week. The discount works like this: until the end of the year, as long as a litre of fuel costs more than 10 cents above what it cost in the week of 2 to 6 March, the state uses ISP to hand back the extra VAT it collects because of the higher prices. When fuel gets cheaper, the discount shrinks too.
Every filling station must display a "Redução do ISP+IVA" sign showing how much the tax and VAT have been cut per litre. From 9 November it will read 22.7 cents for diesel and 19.1 cents for petrol. You can find prices by district on our page "How much fuel costs in Portugal".
