Diesel price jumps sharply in Portugal as BP, Repsol and Galp lift fuel prices

As anticipated at the end of last week, Monday (27 July) brought another steep increase in the price of diesel.

Reviewing the movements reported by the main fuel retailers, standard diesel climbed by a significant 6–7 cents per litre. Petrol rose by less, at roughly 1.5–2 cents.

BP led the increases: standard diesel went up by seven cents per litre and standard petrol by two cents. Repsol and Galp also raised standard diesel, by 6.5 and 6.4 cents per litre respectively. For standard petrol, Repsol increased its price by two cents per litre, while Galp put it up by 1.6 cents.

With these rises-which are expected to be mirrored across all stations-the average price of standard diesel will once again move above the two-euros-per-litre threshold this week, something that has not happened since 10 May.

In addition, the sharp rise in diesel will place it above the average price of standard 95 unleaded petrol, which is expected to settle at around 1,99 €/l.

As usual, the basis for calculating fuel prices is the data published by the Directorate-General for Energy and Geology (DGEG), in this case the figures from last Friday, 24 July.

The DGEG figures already reflect the discounts applied by fuel retailers, as well as the Government measures currently in force. It is worth remembering, however, that these are average, indicative values and may differ from the prices displayed at individual filling stations.

What is driving this sharp increase?

The rise in fuel prices is directly linked to the end of the ceasefire between the US and Iran. Brent-Europe’s benchmark-surged again over the past week.

After hovering around 70 dollars following the ceasefire announcement, it climbed above 90 dollars last week and even went beyond 100 dollars. With the announcement of a suspension of attacks on Monday, 27 July, the price per barrel fell more noticeably to 85–86 dollars.

For comparison, before the conflict the average price of standard diesel stood at 1,635 €/l, while standard petrol was at 1,705 €/l.

Reduction in the ISP discount

In light of fuel price developments, the Government announced a further adjustment to the extraordinary discount applied to the ISP (Tax on Petroleum and Energy Products), which has been in place since the start of March.

Under Ordinance No. 314-B/2026/1, dated 24 July, the discount for standard diesel increased from 6,01 cents per litre to 7,52 cents per litre. The corresponding figure for standard petrol rose from 4,64 cents per litre to 5,50 cents per litre.

This exceptional measure was originally due to run only until the end of June. However, the Minister for the Environment and Energy, Maria da Graça Carvalho, said the support will remain in place for as long as current market conditions persist-adding that the discount will be phased out gradually once the situation stabilises.

“Continuaremos a aumentar o desconto para pouparmos os portugueses e não termos o Estado a lucrar”, said António Leitão Amaro, Minister of the Presidency, at the end of last week.

This extraordinary ISP reduction sits on top of the mechanism in place since 2022, designed to soften the impact of fuel price increases following Russia’s invasion of Ukraine. That framework partially reduces the tax applied to petrol and diesel and has been progressively adjusted in line with price movements.

What is at stake?

The increase in fuel prices in Portugal and across Europe is directly tied to escalating tensions in the Middle East, which led to the closure of the Strait of Hormuz-one of the main routes for exporting oil from the Persian Gulf. Around 20% of global crude trade passes through this channel.

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