São João da Madeira, Portugal. Oct. 11, 2026 (Lusa) - The prime minister on Sunday called for a prompt resolution to the «difficult» international situation driving the unnecessary rise in oil prices, which has been «hitting economies and people hard,» and urged a swift conclusion.

«We must resolve this issue (…) in the coming weeks, in the near future, this senseless situation in which we are harming economies and people in general, from which nobody is benefiting, and break this deadlock,» said Luís Montenegro.

The head of government was speaking at the ceremony marking the centenary of the municipality of São João da Madeira, in Aveiro, held at the Casa da Criatividade.

He referred to this context and the «uncertainty it brings» to highlight the «effect it is having on the supply of essential goods, particularly fuels, whose prices are rising unreasonably».

«Because every economy in the world is experiencing some effect from the rise in the price of oil, and consequently, of fuel, and many other products whose prices are rising» due to transport costs, he added.

«Here, in São João da Madeira, I wish to invoke the principle of not wasting anyone's strength, but rather valuing everyone's strength. That is what has been, and what I want to see, this week as we presented the State Budget; even more so, in the eyes of Portuguese society, at a time we know is extraordinarily challenging. It is a very challenging time, resulting from the instability we are experiencing on the international stage,» he noted.

Resolving the fuel issue will not be enough, as «there are other factors contributing to instability», such as «political, geopolitical and trade conflicts», he said.

«We must remain resilient; we must stay strong in the face of difficulty,» he remarked.

The prime minister also said he had raised this issue at the United Nations General Assembly and «with partners in the European Union, the European Parliament» and other countries in southern Europe.

Highlighting the workforce of São João da Madeira, he noted that «solutions are always to be found in hard work», believing «in talent, nurturing talent and identifying talent».

«Portugal is today, believe me, one of the countries with the greatest international recognition on a global scale; I have no doubt of that. Nowhere have I been where Portugal hasn't been singled out for setting an example. What example? The example of tenacity, endurance, resilience and overcoming adversity,» he added.

Montenegro took a swipe, without naming names, at those who «want to bring instability, even from a social perspective, into the country».

«They will not achieve that aim either, which is a negative one. It is one thing to talk about problems; it is quite another to want to import instability that has no place here,» he argued.

On the other hand, he sees Portugal today as «a country with economic, financial, political and social stability».

Pointing out that the country «is heading for its fourth ‘surplus'» and will have public debt below 85 per cent next year, Montenegro defended the stability and safety net it has built at the international level, which will allow it to respond to adverse conditions.

«What we are doing in Portugal is, so to speak, a kind of ‘São João spirit'. We are levying lower taxes on income from work. This means that we place greater value on the effort each person puts into the tasks they undertake,» he said.

The government has «cut taxes on earned income six times», and Montenegro highlighted increases in pensions to «reward a lifetime of work», as well as successive increases in the solidarity supplement for the elderly.

In valuing work, he emphasised that the reduction in corporation tax (IRC) and business taxes also plays a part, criticising the «very limited view of public policy» held by critics of the measure, who, in his view, wish to link this to «giving more money to the most privileged in society».

In his view, this action enables companies to generate better business, invest more in innovation, keep pace with «market challenges», and «pay better wages».

SIF/ADB // ADB.

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