Dublin, Sept. 18, 2026 (Lusa) - Portugal's finance minister acknowledged on Friday that fuel subsidies will remain in place «for some time», linking any reassessment to developments in the war in the Middle East and arguing for income support rather than changes to VAT on energy.
«This support is set to continue for some time. When [the war] ends, we will assess the situation at that time in terms of prices and the conflict,» said Joaquim Miranda Sarmento, speaking to the Lusa news agency as he arrived for the informal meeting of eurozone finance ministers in Dublin, hosted by the Irish Presidency of the Council of the European Union.
He noted: «When the war in Iran began, petrol was priced at around €1.64/€1.65, and we have always said that, as long as it remains 10 cents above this figure – that is, around €1.75 – we will apply this automatic discount on the ISP [Tax on Petroleum and Energy Products].» Furthermore, «yesterday [Thursday] we decided to renew support for freight transport companies, private social care providers, the fire service and other sectors, and last week we decided to renew support for agricultural diesel», he added.
This involves extending, until the end of the year, the mechanism for reducing the tax on fuels and a series of extraordinary support measures for the sectors most affected by rising prices, namely freight and passenger transport, taxis, the fire service and the social sector.
The government has also decided to extend support for agricultural diesel until the end of the year.
When asked about the Socialist Party's calls to reduce VAT on energy to 6%, including fuel, electricity and gas, Joaquim Miranda Sarmento emphasised: «We prefer to return income to people, through income tax and pensioners, rather than subsidising the consumption of a single good».
The statement follows the government's announcement, also on Thursday, of a further reduction in personal income tax and an extraordinary supplement for pensioners, as part of an overall package worth €800 million.
The measures are part of the response to the rising cost of living linked to higher fuel prices.
ANE/ADB // ADB.
Lusa
