Portugal Fuel Prices Surge Amid Middle East Conflict

Fuel prices in Portugal increased significantly between February and September 2026 following the outbreak of war between Iran and a coalition led by the United States and Israel. According to the Directorate-General for Energy and Geology, average prices for standard diesel rose from €1.596 to €2.219 per litre, while 95 octane petrol increased from €1.681 to €2.113 per litre by September 27.

The price surge stems from damage to energy infrastructure in the Middle East and shipping restrictions in the Strait of Hormuz. These costs have impacted multiple industries, with the National Association of Passenger Transport estimating additional expenses of €35 million and medicine distributors anticipating losses of up to €4 million.

To address the crisis, the Government of Portugal, led by Luís Montenegro, agreed to extend a 10-cent-per-litre support measure for professional and agricultural diesel to assist earthmoving contractors. Despite this intervention, DECO PROteste and the Portuguese Association of Distribution Companies warn that rising operational costs will likely be passed on to consumers through higher prices for goods and services.