Need to refuel? Wait: Fuel prices are coming down

Next week will bring some relief to fuel prices. The reduction is expected to begin on Monday for both diesel and gasoline, but will be more pronounced for the former.

According to industry sources cited by the Automóvel Club de Portugal (ACP), the price of gasoline is expected to fall by 1.5 cents and that of diesel by 3.5 cents .

"If the forecasts for next week are confirmed, the average price of simple diesel should fall to 1.551 euros per liter while that of simple 95 gasoline will settle at 1.691 euros per liter," indicated the ACP.

These calculations take into account that, according to the General Directorate of Energy and Geology (DGEG), the average price of a liter of diesel in Portugal on Friday (August 8) was 1.586 euros, while gasoline was 1.706 euros.

The ACP also noted that the "forecasts are made based on the assumption that the extraordinary tax reduction measures implemented by the government will be maintained to mitigate price increases."

"The measures in force include the reduction of the Tax on Petroleum Products (ISP) and the compensation of additional VAT revenue," he highlighted.

How is oil doing in international markets?

The price of a barrel of Brent crude for October delivery ended Thursday on the London futures market down 0.69% to $66.43, falling for the sixth consecutive session. North Sea crude, the benchmark in Europe, closed the session on the Intercontinental Exchange down $0.46 from the $66.89 it closed at on Wednesday.

Brent continued to fall for the sixth consecutive session and is getting closer and closer to the $65 per barrel barrier, after the Kremlin (Russian presidency) announced that Russian President Vladimir Putin will meet with his US counterpart, Donald Trump, in the coming days.

The market is closely following this meeting, which would be the first summit between the leaders of the two countries since 2021, in the hope that it could bring a diplomatic end to the war in Ukraine and the lifting of sanctions on Russia and its oil infrastructure.

Despite the summit, Trump intends to move forward with the secondary tariffs he threatened to impose on India and China, the main importers of Russian oil.

The US president signed an executive order on Wednesday imposing an additional 25 percent tariff on Indian oil purchases from Moscow, while tariffs on China remain pending.

The pessimistic sentiment had already weighed on Brent oil prices after the Organization of the Petroleum Exporting Countries (OPEC+) alliance, led by Saudi Arabia and Russia, decided over the weekend to increase its crude supply from September, raising concerns about a potential oversupply amid weak demand.

According to what was announced at its meeting last Sunday, the group will increase its production by 547 thousand barrels per day (bpd) from September 1, completing the return of the 2.2 million barrels per day (mbd) withdrawn from the market in 2023.

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