Lisbon, Sept. 9, 2026 (Lusa) - Portugal's minister for the environment and energy argued on Wednesday that fuel taxation «is extremely important» for funding the national health service (SNS) and education, justifying the government's decision not to follow Spain's lead in implementing a more widespread reduction in taxes.
«Fuel taxation is extremely important, particularly for funding the SNS and education, just like all other forms of taxation, such as personal income tax (IRS), corporation tax (IRC) or property tax (IMI)», stated Maria da Graça Carvalho during a hearing before the Environment and Energy Committee.
When asked about the tax burden on fuel and the comparison with Spain, the minister stated that Portugal had taken a different approach to that of its neighbour.
«When you compare us with Spain, we have taken a different approach. I do not wish to stand here criticising Spanish tax policy,» she said in response to questions from Chega MP Rita Matias.
Graça Carvalho linked this choice to the priority given by the Portuguese government to reducing direct taxes, pensions and achieving a «balanced» public budget.
«Portugal has chosen to prioritise personal income tax (IRS), corporation tax (IRC), pensions and a balanced budget in order to pay low interest on the debt,» she stated.
In the case of fuel, she explained that the Government is maintaining, as its main cross-cutting measure, the one-off discount on the Tax on Petroleum and Energy Products (ISP) to mitigate the rise in prices due to the war in the Middle East, which amounts to €700 million to date and is expected to reach €1.3 billion by the end of the year.
The response to rising energy prices also includes €30 million in support for commercial diesel, €3.6 million earmarked for Private Social Solidarity Institutions (IPSS) and the social sector, and €15 million for the ‘Incentiva +TP' extraordinary support scheme – the Incentive Programme for Public Passenger Transport.
The government has also introduced a €600 million funding scheme under the «Portugal Energy Resilience» initiative and plans to extend the «Botija Solidária» [cooking gas cylinder subsidy] programme until the end of the year, with a budget of €3.7 million.
Among the other measures planned are support for diesel in the agricultural and fisheries sectors until the end of the year, and support for firefighters, private social solidarity institutions (IPSS) and transport operators, to be finalised in September.
The minister argued that, in addition to the discount in the Tax on Petroleum and Energy Products (ISP), the response to rising fuel prices should focus on the sectors and groups considered most vulnerable, rather than taking the form of blanket aid.
«In the view of those who study these matters, this is more efficient than a blanket subsidy that supports everyone, even those who are not greatly affected by it; of course it is bad for everyone, but this rise does not affect them much,» she said.
According to Graça Carvalho, targeted support for agriculture, fisheries and freight transport is also intended to prevent the rise in fuel prices from feeding through to inflation and food prices.
«This means that we will, for example, provide funding for agriculture, fisheries and freight transport, in an effort to prevent the rise from spilling over into inflation and food prices,» she said.
The minister also reiterated that the government is not generating additional revenue from the rise in fuel prices, maintaining that the increase in VAT revenue is offset by the reduction in the ISP tax.
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