The tax reduction determined by the measures currently in force is 25 cents per litre of diesel and 26 cents per litre of petrol.
“Within the framework of price developments, the Government determines the return of additional VAT revenue, via the ISP, taking as a reference the values prior to the conflict in Ukraine, translating into an additional reduction of two cents per litre on diesel and one cent per litre on gasoline”, reads the statement sent by the Ministry of Finance.
Taking only the ISP discount into account, this now totals 15.1 cents per litre for diesel and 16.3 cents per litre for gasoline. Furthermore, the partial suspension of the updating of the additional rate on CO2 emissions (carbon tax) remains unchanged, thus totalling a total “discount” of 25.1 cents per litre of diesel and 26.1 cents per litre of gasoline.
This change takes effect on Tuesday. This week, it was predicted that diesel would fall by one cent and gasoline would rise by one cent. However, with the changes in the tax burden, the decline in diesel fuel is accentuated and the price of petrol starts to stabilise compared to last week.
Regarding future developments, “the Government will continue to regularly evaluate the evolution of the fuel market, within the framework of measures to mitigate geopolitical shock, the environmental objectives of fuel taxation, the levels of consumption practiced and the convergence of the weight of taxes on fuels with the Eurozone average”.