Portugal's Council of Ministers has approved a proposal for legislative authorisation to introduce a Temporary Solidarity Contribution on the Petroleum Sector, applying a 33% levy on certain excess profits earned in 2026 to help finance measures addressing higher fuel prices.
Portugal’s Council of Ministers approved a proposal for legislative authorisation to be submitted to the Assembly of the Republic to establish a Temporary Solidarity Contribution on the Petroleum Sector. The exceptional and temporary measure will apply only to the 2026 period and is intended to finance measures to mitigate the impact of rising fuel prices.
This announcement was made on 30 July 2026.
Under the proposal, the contribution will apply to companies engaged in crude oil and refining activities. It will be charged at a rate of 33% on the portion of relevant profits determined for 2026 that exceed by more than 20% the average profits recorded in the 2024 and 2025 financial years.
The Government said the solidarity contribution must be assessed and paid by the end of September 2027 and stated that it will seek to ensure the measure is implemented in full.
The proposal comes amid instability in international energy markets and an exceptional increase in fossil fuel prices, which the Government said has significantly increased costs for households and businesses across multiple sectors. At the same time, it noted that crude oil extraction and petroleum refining activities have generated extraordinary profits resulting exclusively from external market conditions.
According to the Government, the new solidarity mechanism is intended to tax part of those exceptional profits to fund measures that reduce the impact of higher fuel prices on households and the most vulnerable economic operators. The revenue will also support investments aimed at reducing structural dependence on fossil fuels and promoting a more sustainable and resilient economy.
