Al Jazeera
Portugal has proposed a temporary subsidy of 10 euro cents per litre on diesel for key sectors such as agriculture and transport to ease fuel cost increases due to the Iran war.
The subsidies could cost up to 450m euros ($519m) over three months, but will only apply if diesel prices remain more than 10 cents above the average for the first week of March, when the US-Israel war on Iran intensified, the government said.
The subsidies, which will run from April 1 to June 30 and still need parliamentary approval, will support sectors such as agriculture, forestry, fishing, public transport and taxis, and will be capped at a fixed diesel consumption limit per vehicle.
Prime Minister Luis Montenegro said the support was temporary and highlighted the need to continue managing the state budget responsibly and prudently.
The government is studying additional support measures should the conflict escalate and put further pressure on fuel and essential goods prices, Montenegro said, adding that there are no plans to reduce VAT on fuels or food.
The subsidies could cost up to 450m euros ($519m) over three months, but will only apply if diesel prices remain more than 10 cents above the average for the first week of March, when the US-Israel war on Iran intensified, the government said.
The subsidies, which will run from April 1 to June 30 and still need parliamentary approval, will support sectors such as agriculture, forestry, fishing, public transport and taxis, and will be capped at a fixed diesel consumption limit per vehicle.
Prime Minister Luis Montenegro said the support was temporary and highlighted the need to continue managing the state budget responsibly and prudently.
The government is studying additional support measures should the conflict escalate and put further pressure on fuel and essential goods prices, Montenegro said, adding that there are no plans to reduce VAT on fuels or food.
