If there is an area in which Portugal is far from the “tail of Europe”, that area is that of fuel prices, with our country having one of the most expensive prices on the “Old Continent”, whether gasoline or diesel.
At the end of February, our country had the fourth most expensive gasoline in Europe, the result of an escalation in prices that has been witnessed since the beginning of 2021.
According to the accounts of Jornal i, this year gasoline has already increased by 11 cents, while diesel rose by 9.1 cents. In other words, in the first nine weeks of the year, the price of gasoline has always risen and diesel has not been far behind, the only exception being the first week of February, when the price of this fuel fell.
If we go back to 2020, the rise in prices has been felt for 17 consecutive weeks (!), the only exception being such a drop in the price of diesel.
Why do we pay so much?
As you well know, the amount you pay for a liter of fuel depends on several factors. Some of them are independent of our country and are linked to the price of oil (with the Brent barrel as a reference).Subscribe to our newsletter
In addition, your fuel bill also includes the fixed costs of fuel storage and distribution and the value of incorporating biofuels (which percentage is shown in the bill you receive when you refuel).
However, it is the “state slice” (aka tax burden) that makes the price of fuel in Portugal approach the highest in Europe (and far away, for example, from those practiced in Spain).
Fuel taxes account for 60% of the final sale price to the public, which means that for every 100 euros spent on gasoline, 60 euros go directly to the state.
In addition to the traditional VAT (Value Added Tax), fuels are subject to the Petroleum Products Tax (ISP), which is why its price includes 60% of taxes.
How are we facing Europe?
According to data published by the National Entity for the Energy Sector (ENSE), on February 22, 2021, gasoline 95 in Portugal cost, on average, €1,541/l, whereas simple diesel cost €1,386/l.
During that same period, across the European Union and including Switzerland and the United Kingdom, only the Netherlands, Denmark and Greece had more expensive gasoline than Portugal. In the Netherlands this amounted to €1,674/l, in Denmark to €1,575/l and in Greece to €1,557/l.
Countries such as France (1,470 €/l), Germany (1,351 €/l), the United Kingdom (1,417 €/l), Spain (1,269 €/l) or even Luxembourg (1,222 €/l) and Switzerland (1,349 €/l) all had cheaper gasoline than here.
Finally, even the price of bottled gas in Portugal is also higher than in other European countries, with a bottle costing 26 euros in Portugal, while next door in Spain it costs 13 euros.
Source: Newspaper i.