Fuels are 27 to 55 cents more expensive in Portugal than in Spain. See the comparisons
Cheaper diesel and gasoline on the other side of the border. The cause is taxes. Differences reach half a euro per liter
Galp currently charges 36.6 cents more in Portugal than in Spain for a liter of simple diesel; plus 51.4 cents for a liter of diesel +; another 36.9 cents for a liter of gasoline 95; and another 51.4 cents for a liter of gasoline 98. The example of Portuguese gasoline is just one among many.
The companies are the same, the prices are not. Galp, Repsol and BP are three of those that both have supply networks in both Portugal and Spain, but prices on the border side are very different today. Because of taxes.
Today, Monday in March, prices in Portugal only had the biggest increase since 7 weeks since prices began to climb, starting still in 201 and worsening with the crisis in Ukraine. In fact, the increases were higher than expected: instead of 14 cents, diesel increased by 15.5 cents overnight (depending on the gas stations); and instead of eight, gasoline 95 increased by 11 cents.
Comparing with the prices of gases today in Spain, the differences are evident In the table, you can compare the prices of gases in these three networks in Portugal and Spain:
This comparison was made from prices made by CNN Portugal at the gas stations themselves, contacted, this information was not fixed by CNN Portugal to give these stations.
Remember that gas companies have freedom of prices. This explains that Sunday increases of eight and 14 cents were expected, respectively for gasoline 95 and simple gas oils, but the most recent increases for being higher. As gasoline is going to be higher at the highest price than oil in the week, it possibly raises the price higher than sold. There is no solution available to explain to CNN Portugal.
As for gasoline prices, the differences in health principles in Portugal and Spain are also different, always more expensive on this side of the border than on the other side.
The differences are mainly related to the tax burden, while Portugal charges above average taxes, while Spain charges below average.
This difference starts right at the Petroleum Products Tax:
Source: APETRO
The ISP is also required to pay VAT, whose rate in Spain is 21%, lower than the rate of 23% in Portugal:
All in all, around 60% of the bill paid by the Portuguese translates into a tax burden, with the remaining 40% being shared between gasoline, transport and other processes so that the fuel reaches the pump.
In 2021, the Portuguese State will have collected around three billion euros with the ISP – Tax on Petroleum Products alone, which is taxed on every liter of fuel. A value that falls short of the budget that was the State foreseen by the executive, in the 2021 Budget Budget (3.4 billion). According to the 2022 document, however failed, the previous executive will fit this year 3.5 million with this tax. Plus the corresponding VAT.