Don't forget that fuel prices will change: See the forecasts

If you need to fill up, it's best to head to the pump this Sunday, because fuel prices are going up. Starting this Monday, the price hike is expected to affect both diesel and gasoline.

The price increases will be 0.5 cents in both cases , the Automóvel Club de Portugal (ACP) said on Friday, citing industry sources.

"Next week will bring another change in fuel prices, with forecasts pointing to a rise in diesel and gasoline prices. According to industry sources, both diesel and gasoline prices are expected to increase by 0.5 cents," the ACP website states.

This at a time when, according to the General Directorate of Energy and Geology (DGEG), the "average price of a liter of diesel in Portugal cost this Friday (August 22) 1.537 euros, while the average price of a liter of gasoline totaled 1.691 euros".

"If the forecasts for next week are confirmed, the average price of simple diesel should rise to €1.542 per liter (€/l). The average price of simple 95% gasoline will rise to €1.696/l," it reads.

These forecasts, the ACP states, "are based on the assumption that the extraordinary tax reduction measures implemented by the government will continue to mitigate price increases. The measures in force include the reduction of the Tax on Petroleum Products (ISP) and the offsetting of additional VAT revenue."

How is oil doing in international markets?

The price of a barrel of Brent crude for October delivery ended Thursday on the London futures market up 1.24% to $67.67, rising for the second consecutive day.

North Sea crude, a benchmark in Europe, closed the session on the Intercontinental Exchange at $0.83 above the $66.84 at which it closed trading on Wednesday.

Brent crude oil reacted positively for the second consecutive session due to the market's perception of stagnation in the peace negotiations between Russia and Ukraine and the latest data on US crude oil reserves, which suggest that oil demand remains strong despite geopolitical and trade volatility.

According to Forex market analyst Julián Pineda, the diplomatic impasse in peace negotiations between Moscow and Kyiv, despite efforts by the European Union and the United States, "increases the risk that Western countries will impose additional sanctions, further restricting Russian oil flows as a leverage measure."

The market is confident that a negotiated agreement to end the conflict is imminent, and with it, the easing or suspension of sanctions on Russian crude oil.

US President Donald Trump has said he is negotiating a future bilateral meeting between his Russian and Ukrainian counterparts, Vladimir Putin and Volodymyr Zelensky, respectively, to reach a peace agreement on Ukraine, although some controversial points still need to be resolved, such as possible land swaps between the two nations or future security guarantees for Kyiv.

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