Oil prices are falling and fuel prices are rising! What’s going on?

We have been monitoring fuel prices from week to week. In recent weeks there have been some significant drops, but then the price of fuel remains almost the same. What is happening?

Government increased carbon tax...

The carbon tax is to blame. With the price of oil falling, the government took the opportunity to increase the carbon tax. This tax is levied on fuels.

A carbon tax, or carbon tax, is a fiscal measure implemented by governments with the aim of reducing greenhouse gas emissions, particularly carbon dioxide (CO₂), which contribute to climate change. This tax is levied on activities that involve carbon emissions, such as the burning of fossil fuels (oil, coal and natural gas) in sectors such as industry, transport and energy production.

The carbon tax has been rising since August 26th (it has already been increased 3 times). In the last increase, the tax went to 68.368 euros per ton of CO2, a value that has offset the drop in gasoline or diesel prices.

Taking into account the efficient price, published by the Energy Services Regulatory Authority (ERSE) last Monday, diesel costs 27 cents less and gasoline 20 cents less, compared to September 2023.

Source: pplware.sapo.pt