Knowing that on Friday, according to the bulletin of ENSE – Entidade Nacional para o Setor Energético, the average price of sale to the public (PVP) was 1,976 euros/litre for simple gasoline 95, the price at the pump will increase to 2,069 euros next week, and that of simple diesel will increase to 2.026 euros/litre, knowing that on Friday the PVP was 1.89 euros/litre.
Given market developments [das cotações dos produtos petrolíferos e dos produtos refinados] and knowledge of the markets, the government assumed that the retail price of a liter of diesel would increase by 16 cents and that of petrol by 11 cents.
Given this assumption, an estimate was made of the increase in VAT revenue due to the new rise in fuel prices and a reduction of the same amount was defined on the side of the Tax on Petroleum Products (ISP), to stem the rise in prices. .paid by consumers.
As the Secretary of State for Fiscal Affairs, António Mendonça Mendes, said on Friday, “assuming that next week there may be an increase in pumps of 16 cents per liter of diesel and 11 cents per liter of gasoline, this translates into a potential increase in VAT revenue of 2.4 cents per liter of diesel and 1.7 cents per liter of gasoline.This value is fully reflected in the decrease [do ISP] which we have decided today and which will enter into force next Monday”.
In practice, the upside felt by consumers over the next week will effectively be 13.6 cents for diesel (i.e. the 16 cents deducted from the 2.4 cent PSI cut) and 9.3 cents for gasoline (11 cents deducted from the 1.7 cent reduction in the FAI).
At stake is a compensation mechanism by which the government reduces the increase in revenue obtained through VAT into the fixed rate of the ISP to mitigate the increase in fuel prices, which has intensified with the invasion of l Ukraine by Russia.
This measure is in addition to another in force since October and which consists of reducing the FAI by two cents on a liter of petrol and one cent on diesel, which has since enabled families and businesses to save 38 million euros. euros.
During Friday’s press conference, António Mendonça Mendes said that experience shows that FAI cuts tend to be diluted over time at the margins of petrol stations: “We know that FAI is not the most effective instrument as it does not provide an absolute certain impact on the price,” the government official said.
Even so, he expressed his confidence that in the current difficult environment, there will be social responsibility on the part of all officers.
“I’m sure there won’t be any economic agent who wants to make money [perante esta conjuntura de subida de preços devido à guerra na Ucrânia] and we’re confident that gas stations will not only internalize that ISP rebate to think about the price but also be careful what their markups are and we’re sure no one here has a position of earning money in this tragic situation,” he said.