Lisbon, May 28, 2026 (Lusa) – Portugal’s assistant Secretary of State and Energy, Jean Barroca, said on Thursday that the country was in a "relatively robust" position regarding physical energy supply but acknowledged the country remained exposed to international oil and gas prices.
He distinguished between direct exposure to physical supply and economic exposure to international markets during an Environment and Energy Committee hearing, which the far-right political party Chega requested to debate the energy crisis and its impacts on Portugal.
"Regarding physical supply, Portugal is in a relatively robust position," he said, maintaining that the country does not rely directly on crude oil or natural gas coming through infrastructure in areas where geopolitical tensions in the Middle East currently cause the greatest impact.
He noted that Brazil and Algeria acted as the main crude oil suppliers in 2025, while Nigeria and Brazil provided most of the natural gas.
Barroca also listed the country's strategic reserves, diversified supply infrastructure, liquefied natural gas reception capacity at the Sines terminal (a deep-water port in southern Portugal), and domestic refining capacity.
"All this means that Portugal faces this situation from a substantially more resilient position," he said.
However, he acknowledged that the country was not immune to international market trends, underlining that global markets determine energy prices.
"Markets are global today and, when the international price of oil rises, it rises for everyone," he said, adding that a rising perception of geopolitical risk spreads to European and global markets.
When asked about the scope of domestic action, Barroca illustrated the exposure to international markets by saying that fuel prices can respond more quickly to a social media post by US President Donald Trump than to any measure Portugal adopts.
He said the government's response rests on two plans: immediate reaction and market monitoring, and a structural plan focusing on reducing external energy dependence.
He said that, in the immediate plan, the government monitors international market trends daily and coordinates with national and European entities.
He added that this monitoring allows the government to assess price trends, the impact on fuel and electricity, supply levels on the mainland and islands, reserve levels, and risks to consumers and economic sectors.
He noted that the government activated temporary, extraordinary fuel mitigation mechanisms within this framework to limit the impact of international volatility on families and businesses.
Barroca mentioned the fiscal adjustment of the fuel tax (ISP) among these measures, aiming for fiscal neutrality amid rising VAT (Value Added Tax) revenues, alongside an increase in compensation to €25.
However, the official warned that no short-term response structurally resolves external energy dependence.
"No state budget can isolate us" from an international crisis, he said, arguing that true protection for the country requires progressively reducing energy dependence.
"The more energy Portugal produces from its own resources, the less vulnerable it will be to international shocks," he added.
He noted the goal was to halve external energy dependence, structurally reducing reliance on imported fossil fuels.
Barroca also told the hearing that renewables accounted for about 80% of Portugal's electricity production in January, and that the country maintains one of the lowest average wholesale electricity prices in Europe.
"Every renewable megawatt installed in Portugal is, ultimately, less fuel dependence," he said.
When asked about the crisis's development, the official acknowledged that the government "does not control the progress of the crisis" and that support measures would depend on the situation at any given time.
"The government monitors and adjusts support measures to the situation," he said, adding that teams must evaluate developments "week by week."
He also acknowledged that the country still had a high external energy dependence, amounting to about two-thirds of primary energy consumption, largely linked to the transport sector.
Therefore, he said the energy sovereignty strategy relies on electrifying consumption wherever possible and deploying alternative technological solutions for the hardest-to-decarbonise sectors, including renewable gases, biofuels, synthetic fuels, and carbon capture.
SCR/LYT // ADB.
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