Industry sources consulted by the Automobile Club of Portugal (ACP) reveal that diesel prices are expected to drop 1.5 cents. Regular 95% petrol is expected to remain at current prices.

"If forecasts for next week are confirmed, the average price of diesel should fall to €1.538 per litre, while that of 95-strength petrol will remain at €1.693 per litre," the ACP website states.

This is at a time when, "according to the Directorate General of Energy and Geology (DGEG), the average price of a litre of diesel in Portugal on Thursday (August 14) was €1.553, while that of petrol was €1.693."

The ACP notes that "these forecasts are based on the assumption that the extraordinary tax reduction measures implemented by the government to mitigate price increases will continue."

"The measures in force include the reduction of the Tax on Petroleum Products (ISP) and the offsetting of additional VAT revenue," it reads.