Fuels: Government denies “illegal tax”, but part of ISP yields IP

O The Ministry of Finance ensured, this Monday, that there was no “any ‘illegal tax’ on fuels”, since the Road Service Contribution (CSR) was abolished in 2022, because it was not “according to European law”. However, that rate was secured “through the consignment of part of the revenue from the Petroleum and Energy Products Tax (ISP)”.

The clarification emerged following a report published today by News Journal (JN), whose title was “Illegal fuel tax yields more than 700 million to Portugal’s Infrastructure”.

“The Court of Justice of the European Union (TJEU) held in February 2022 that the CSR, established in 2007, did not comply with European law, in particular the provisions of the Directive on the general system of excise duties. Following this decision of the TJEU, the Government of that time promoted, in 2022, a legislative amendment by which the CSR was abolished, so this contribution has not existed since 2022”, the Ministry recalled, in a statement addressed to the editorials.

The body indicated that “the financing of the national road network in charge of the Infrastructures of Portugal, which was financed by the revenue from that contribution, has now been ensured through the provision of part of the ISP revenue”, the amounts “then fixed have remained unchanged since 2022”.

“ Thus, the financing model of the current national road network is in full compliance with European law and national law, with no ‘illegal tax’ on fuels,” he argued.

JN, in turn, indicated that the CSR was incorporated into the ISP as a way of charging the value, remains vital for the sustainability of the public enterprise. According to the newspaper, CSR it has paid IP around EUR 710 million in 2025, via the ISP, the highest value since 2015.

The government makes no reference to the figures established by the ISP.

It should be noted that week starts with a further increase in fuel prices. In particular, the estimates point to an increase of 3.5 cents in the price of diesel and to an increase of 2.5 cents in the case of petrol, according to the source of the sector News to Minutes. 

Moreover, the price of private transport fuels rose by 16.9% in the European Union in July, compared with the same month of 2025, with Portugal's 12th largest increase among the 27 Member States, according to Eurostat data.

For June 2026, gasoline increased by 4.7% and diesel 4.3% in the EU. In Portugal, the biggest increase was in diesel (2.1%), with gasoline prices rising by 1.1%.

This is the fifth consecutive month in which fuel prices increase in the EU, due to the war in Iran, which began on 28 February, which led to the closure of the Ormuz Strait, where about one fifth of the world’s liquefied natural gas and oil passed.

In June, after the United States and Iran agreed to a ceasefire, which included the reopening of the Ormuz Strait, prices slowed slightly. However, early in July, US President Donald Trump decreed the end of the agreement, leading to the resumption of the conflict and a further closure of the strait.