Fuel price increases are expected for both petrol and diesel, according to forecasts by the Automobile Club of Portugal (ACP).

The price increase will be 3.5 cents for diesel and 2 cents for petrol, according to the ACP, which cites industry sources.

"If forecasts for next week are confirmed, the average price of regular diesel should rise to €1.608 per litre, while that of regular 95% petrol will increase to €1.693 per litre," says the ACP.

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