Fuel price cap comes into force this Friday

  • Lusa
  • 22 October 2021

This initiative was criticised by the sector's associations, which accused the government of wanting to divert attention away from the weight of taxes on fuel prices.

A law that allows the government to limit margins in the marketing of fuels was published on Thursday and comes into force this Friday.

The law says that “regardless of the declaration of a situation of energy crisis provided for in the previous paragraphs, for reasons of public interest and to ensure the regular functioning of the market and consumer protection, may be set, exceptionally, maximum margins in any of the commercial components that form the retail price of simple fuels or bottled LPG.

According to the law, which amends several decrees that establish the general principles relating to the organisation and functioning of the National Petroleum System, “maximum margins” may “be defined for any of the activities in the value chain of simple fuels or bottled LPG, being set by order of the members of the government responsible for the areas of economy and energy, upon the proposal of the Energy Services Regulatory Authority and after hearing the Competition Authority.

The law also clarifies that “the maximum margins referred to in the previous paragraphs shall be limited in time.

At a press conference, João Pedro Matos Fernandes said that this law, which covers bottled gas, would be sent to parliament, stressing that the measure would be “limited in time”.

The law aims to “give the government a tool so that, when margins on the sale of fuel and gas cylinders are unusually high, and without justification, it can, by decree, limit those margins,” he said.

This initiative was criticised by the sector’s associations, which accused the government of wanting to divert attention away from the weight of taxes on fuel prices.