The government therein explained the decision as “adjusting the ISP to the reduction in VAT charged per litre taking into consideration the oscillation in the international price of crude and the additional negative impacts caused by the rise in consumption brought about by the reduction in the sale price to the public.”

The decree further explained that the €0.03 rise levied on coloured diesel, which is used in agriculture, resulted from “maintaining the differentiation in support prices provided to a set of economic activities – specifically, but among others, agriculture, fish farming and fishing – whilst furthermore interconnected with the revenues foreseen by this tax in the 2016 state budget.”

According to the letter sent to Brussels within the framework of negotiations over the 2016 state budget, the government expects to net an additional €120 million in 2016 through raising ISP although such serves primarily to offset the loss in state revenues otherwise caused by the plunge in international crude prices.

In turn, Márcio Lopes, President of the ANTP – the National Association of Portuguese Transporters – told Lusa that his members felt that the tax rise was “a sad surprise.”

“This is an affront that the government is showing to all transporters and the population in general. The government wants to destroy the transporters but forgets that it is they that drive the country forwards” Lopes told Lusa.

The transport representative added that the government attitude was high handed and had failed to consult with the sector and that this meant “the forms of protest shall be re-thought and will end up harder and more critical” before highlighting that ANTP continues to recommend that truckers fill their tanks up in Spain.