Government advances with a discount of 10 cents per liter on fuel

José Sena Goulão / Lusa

Finance Minister João Leão

The Government will create a discount of ten cents per liter on fuel for all families, up to 50 liters per month. A measure that will be in effect between November this year and March next.

The measure was announced by the finance minister, John Lion, this afternoon, at the Assembly of the Republic, before the government official enters the parliamentary hearing under the general assessment of the State Budget for 2022 (OE2022).

The minister announced that Portuguese families will start receiving, through IVAucher, 10 cents per liter of fuel up to a limit of 50 liters per month.

From November, the support directed to families “will translate into a reduction of 10 cents per liter, up to 50 liters per month”, with the value (which reaches five euros if the consumer uses it in full) to be transferred “to the household account through IVAucher”.

The extraordinary measure will be applied between november and march and aims to mitigate the effect of rising fuel prices, said Leão, adding that it will have a “very high” impact of 133 million euros.

The Executive will also suspend the expected increase in the carbon tax on fuels until March 2022, a measure that will represent a loss of revenue in the order of 90 million euros.

Taxis and buses receive €190 and €1050

According to the official, measures are also being prepared to support the public transport sector for passengers, which involve “transferring to these companies”.

Later, the minister of the Environment, João Pedro Matos Fernandes, explained to Lusa that taxis and buses will receive a “check” of 190 euros and 1050 euros, respectively, which will be paid “only once and upfront”.

“What is foreseen for buses and taxis is an identical discount for that for individuals, 10 cents per liter, but with very different limits”, he detailed, indicating that for individuals it is 50 liters per month, while for individuals taxis will be 380 liters and for buses 2100 liters.

In the case of the goods transport sector, João Leão announced that the extension of the exemption from payment of the Single Circulation Tax (IUC) and the extension of the limit used for professional diesel, which “gives a significant reduction in ISP coverage” for these companies, explained the minister.

Finally, the Government decided to extend, for the entire transport sector, the increase on IRC fuel costs.

This week, the prime minister, António Costa, had already promised that, by the end of the week, more “transitional” measures would be announced to face this fuel crisis.

Last Friday, it should be remembered, the Government decided to reduce the Tax on Petroleum Products (ISP), a measure that runs until January 31st.