Taking into account that on Friday, according to the bulletin issued by ENSE – Entidade Nacional para o Setor Energético, the average selling price to the public (PVP) was 1.976 euros / liter for the 95th simple, and the price at the pumps will rise to 2.069 next week, And the price of a simple diesel will rise to 2.026 euros / liter, considering that the PVP on Friday was 1.89 euros / liter.
Looking at the evolution of the markets [das cotações dos produtos petrolíferos e dos produtos refinados] Knowing the markets, the government assumed that the selling price of a liter of diesel to the public would rise by 16 cents and the price of gasoline by 11 cents.
In light of this assumption, an estimate was made of the increase in VAT revenue due to the new increase in fuel prices and a reduction of the same amount was determined by the Petroleum Products Tax (ISP), in order to stop the increase in prices paid by consumers.
As Minister of State for Finance, Antonio Mendonca Mendes, said on Friday, “Assuming there could be an increase in pumps next week of 16 cents per liter for diesel and 11 cents per liter for gasoline, this translates into a potential increase in tax revenue. The added value of 2.4 cents per liter of diesel and 1.7 cents per liter of gasoline.This value is fully reflected in the decrease [do ISP] Which we set out today and will come into effect next Monday.”
Practically speaking, the increase that consumers will feel over the next week will be 13.6 cents for diesel (which is 16 cents discounted from the 2.4 cent cut at ISP) and 9.3 cents for gasoline (11 cents discounted from the 1.7 cent cut at ISP).
At stake is a compensation mechanism by which the government reduces the increase in revenue obtained through value-added tax at the ISP’s flat rate to mitigate the increase in fuel prices, which intensified with the invasion of Ukraine by Russia.
This measure comes in addition to another in force since October, and consists of cutting the ISP by two cents on a liter of gasoline and one cent on diesel, which has since allowed families and businesses to save 38 million euros. euro.
At Friday’s press conference, Antonio Mendes said experience suggests that ISP declines tend to moderate over time on gas station margins: “We know that ISP is not the most effective tool because it never provides a certainty on price. ,” a government official said.
However, he expressed confidence that in the current context of difficulty there will be social responsibility on the part of all agents.
“I’m sure there will never be an economic agent who wants to make money [perante esta conjuntura de subida de preços devido à guerra na Ucrânia] We are confident that the gas stations will not only absorb this ISP’s discount to reflect the price, but will also pay attention to what their trading margins are and we are sure that no one here is in a position to make money in this tragic situation,” he said.
Read also: Diesel ISP dropped 2.4 cents and ISP’s for gasoline 1.7 cents
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