The tax on petroleum products will fall again, given the new increases expected in the price of fuel, but the drop in diesel is only 0.4 cents per liter. This despite the fact that the price of this fuel has risen 13 cents earlier this week and an additional increase of four cents is expected next Monday.
In the statement that updates the rates of the tax on petroleum products, the Ministry of Finance indicates that the ISP rate for diesel thus drops to the minimum allowed by the European directive. And “recalls that Portugal already requested the European Commission, in April, the repeal of the application of the minimum limits imposed by the aforementioned Directive, by virtue of its article 19, and the evaluation of the request is underway by the services of the European Commission.
This weekly ISP rate review mechanism is intended to return any VAT income earned on the trip to the pre-tax price increase. And they only marginally offset the effect on the final price of the escalation of refined products that was exacerbated by the war in Ukraine.
The Ministry of Finance does not specify how much the diesel ISP would decrease if this minimum limit had not been reached. However, this means that in the case of diesel for road use, the collection of the tax per liter is increasing, as the Observer has already pointed out.
Jump of 13 cents puts diesel above 2 euros per liter (record price) and gives more tax collection
Regarding gasoline, and despite the projections made by the Ministry of Finance, based on the evolution of prices, which point to a fall of 6 cents next week, the oil tax rate will suffer an additional reduction of 1.2 cents per litre. This decrease is due to the increase verified in the first week of June and that increased VAT collection by the State, but that did not give rise to any refund via the oil tax due to the fact that the application of the mechanism was suspended during the first two weeks of June for holidays.
Source: Observadora
