Stocking of low-cost fuel now mandatory for Portuguese filling stations

Stocking of low-cost fuel now mandatory for Portuguese filling stations Image

February 19, 2015

Those enquiring about a motor insurance quote in Portugal while also feeling taxed about the price of petrol in the country will be pleased to read of the government's announcement in the Official Gazette that all of Portugal's filling stations will be required to sell low-cost fuel from mid-April onwards.

Petrol stations will need to comply within 90 days with the order, which reads: "Without prejudice to the free market of petrol and diesel with additional additives beyond the minimum necessary for the performance of its specifications, petrol stations should also market simple fuel."

It follows parliament's unanimous approval of a law in December last year demanding that 'low-cost' fuel be marketed by the country's filling stations. However, the final version of the bill varies from the draft in that the new rule must now be adhered with by every filling station, irrespective of size, whereas previously, only stations with at least four pumps were to be covered.

That surprisingly bold move from legislators came after suggestions by oil company chains that they could respond to the originally-proposed role by closing down medium-sized stations or reducing them to three pumps. The government's stance will certainly be cheered by motor insurance policyholders in the country who had long given up on the idea of parliament standing up to the powerful oil lobby.

Indeed, there has been plenty for those seeking a motor insurance quote in Portugal to be positive about in the first few weeks of 2015, with reporting that dropping prices for oil and oil derivatives on the international market were finally being reflected at the pumps.

However, prices were also on the rise at certain filling stations after the introduction of the country's green tax. This was despite retailers not needing to add the green tax supplement before their petrol and diesel stocks had depleted. It appears that many filling stations have simply pocketed the price difference while hoping that the government's green tax, rather than their own greed, would be blamed by consumers.

Nonetheless, the news service added that drivers in Portugal could now buy diesel for less than €1 per litre, with petrol coming in at about €1.20. Such prices of a competitiveness not seen for at least five years will be heartily welcomed by many of those presently looking for the right motor insurance quote in Portugal.

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