Fill up in Portugal this week and you'll be paying more than ever. Diesel is forecast to climb about 7.5 cents a litre to roughly €2.231, its highest level on record, with petrol up around six cents to about €2.125. It marks the sixth straight week that diesel has averaged over €2 a litre, according to figures from Portugal's energy authority, the DGEG.
The global picture explains the squeeze. Brent crude has pushed back above $100 a barrel, up from about $70 before US and Israeli strikes on Iran in late February. Iran's retaliation has disrupted shipping through the Strait of Hormuz, which normally carries around a fifth of the world's oil, while Ukrainian drone strikes on Russian refineries have cut diesel exports and tightened supply across Europe.
Lisbon is trying to soften the blow. Prime Minister Luís Montenegro says fuel tax (ISP) reductions currently knock about 23 cents off each litre and could reach 25 cents, with the mechanism set to be extended to the end of December. There's also a 10-cent subsidy on professional diesel and €38 million in support for taxi drivers, firefighters and social institutions. Even so, prices keep setting records.
The gulf with neighbouring Spain is where road-trippers should pay attention. Madrid has cut fuel taxes aggressively – and won special EU permission to dip below minimum excise levels – so Spanish diesel is now benefiting from a 20-cent-a-liter reduction in September, triggered after diesel inflation topped 15%. EU figures put average Spanish prices at around €1.79 for diesel and €1.81 for petrol, roughly 40 cents cheaper than Portugal. Border-dwelling Portuguese drivers already cross over to fill up, and anyone driving a hire car near the frontier – the Algarve into Andalusia, the north into Galicia – can do the same.
France, for contrast, is in worse shape: 11% of service stations were dry of petrol or diesel as of September 18, with diesel averaging €2.378 and President Macron convening an emergency meeting.
For travellers, the practical takeaway is simple. If you're renting a car in Portugal, budget fuel at €2.10–€2.25 a litre and plan long drives accordingly. If your route passes near Spain, filling up there saves real money – on a 50-litre tank, around €20. And if you're combining France with your Iberian trip, top up before crossing and expect some stations to be short on supply. It's not a reason to skip a Portuguese road trip – the country remains one of Europe's best drives – but it's worth factoring a fuel line into the budget that looks more like 2022's peak than last year's.
