Speaking on Monday, 7 September, at a ceremony welcoming 21 new inspectors to the Food and Economic Safety Authority (ASAE), Castro Almeida announced the measures would be introduced shortly to reduce the cost of diesel used by farmers.

The minister argued the allocation is necessary due to farmers having a limited scope to cut their fuel consumption, as diesel is essential for operating tractors, harvesting equipment and other agricultural machinery, meaning higher prices can quickly feed through into production costs.

He added that those additional costs can ultimately reach consumers through increased prices for agricultural products, while protecting agricultural diesel would ease pressure on both farmers and household budgets.

Production sector

For now, the government is concentrating its efforts on the agricultural sector rather than establishing fuel measures for other groups.

According to Castro Almeida, the priority was to limit the impact of diesel costs on agricultural production and prevent those increases from being passed on to shoppers.

This decision comes as Portugal faces renewed pressure from higher fuel prices, with forecasts from the Automóvel Club of Portugal (ACP) last Friday, 4 September, estimating that diesel would rise by around €0.15 a litre during the current week, while petrol was expected to increase by approximately €0.12.

António Leitão Amaro, Presidency Minister, stated that the reduction in the fuel tax (ISP) would be increased by around three cents per litre for both petrol and diesel last week.

Prime Minister Luís Montenegro has also said the state has already committed roughly €700 million to fuel-tax reductions in 2026, indicating that further intervention could follow if elevated prices persist.