Reduction anticipated in fuel costs for petrol and diesel
In a positive development for consumers, fuel prices in Portugal are expected to decrease next week, according to predictions from both the Automóvel Club de Portugal (ACP) and the Directorate General of Energy and Geology (DGEG).
The predicted cost for a litre of petrol is set to lower by 0.5 cents, with the new price estimated at €1.686 per litre. For diesel, a more significant decrease is anticipated, with prices predicted to drop by between 1.5 to 3.5 cents, depending on the specific week's forecast. The expected cost for a litre of diesel is €1.594, according to the DGEG.
These forecasted reductions are primarily influenced by two key factors: the continuation of extraordinary government tax reduction measures and a decrease in international crude oil prices. The government has implemented reductions in the Tax on Petroleum Products (ISP) and measures to offset additional VAT revenue, which help mitigate price increases at the pump.
Additionally, the price of Brent crude oil, a major benchmark for fuel costing, has been declining for several consecutive sessions, contributing to lower fuel prices domestically. The Brent crude oil price for October delivery closed recently at about $66.43 per barrel.
It is important to note that end-consumer prices for both diesel and petrol may vary depending on the gas station chosen. Therefore, consumers are advised to compare prices before filling up.
The ACP and the DGEG have been the primary sources of information for these fuel price predictions. The ACP forecasts a decrease of about 1.5 cents per litre for petrol and between 1.5 to 3.5 cents for diesel, depending on the specific week’s forecast. The DGEG's data has shown recent average fuel prices in Portugal before the expected reductions: around €1.706 per litre for petrol and €1.586 per litre for diesel (early August data).
The exchange rate of the euro against the dollar over the past week also influences the predicted fuel prices in Portugal. However, the specific impact of this factor on the predicted fuel price reductions is not currently available.
[1] Automóvel Club de Portugal (ACP) - Fuel price predictions [2] Automóvel Club de Portugal (ACP) - Fuel price forecasts [3] Directorate General of Energy and Geology (DGEG) - Fuel price data [4] Directorate General of Energy and Geology (DGEG) - Crude oil price data
[1] The Automóvel Club de Portugal (ACP) predicts that a litre of petrol will decrease by approximately 1.5 cents, with the new price estimated at €1.686 per litre.
[2] The Automóvel Club de Portugal (ACP) also forecasts a more significant decrease for diesel, anticipating a drop between 1.5 to 3.5 cents per litre, depending on the specific week's forecast.
