The Portuguese Prime Minister Luís Montenegro announced a series of measures to mitigate the impact of the rising fuel costs in the economy and household incomes in a context struck by the conflict in the Middle East.

Increasing co-payments on the solidary bottled gas, setting up an extraordinary facility to assist with professional diesel and maintaining the temporary and extraordinary reductions on fuel prices are the main measures presented. The Prime Minister claimed that "the Government is sensitive towards the impact rising fuel prices has on the Portuguese people’s lives".

Immediate assistance for households and companies

Co-payments on bottled gas will be increased to 25 euros during the next three months, a measure that is aimed at most vulnerable households. Luís Montenegro stressed that the decision is taken "with special social sensitivity" in a framework that required "balance, responsibility, and prudence".

Assistance for households includes setting up an extraordinary facility for commercial diesel applicable to the transportation of passengers and cargo. The measure represents an additional 10-cent-per-litre reimbursement up to a ceiling of 15 thousand litres per vehicle, valid for three months also. The Prime Minister stated this is "an extraordinary facility" to respond to the rising costs.

Structural measures in the energy sector

The Council of Ministers approves on Thursday the legislation on capping prices in an energy crisis situation and protecting vulnerable consumers with a minimum supply guarantee. The Prime Minister noted these are measures that have already been prepared to apply in the current context.

The Government action is based on protecting citizens and the sustainability of public accounts. Luís Montenegro cautioned that "we cannot forego prudence and fall prey to the temptation of wanting to please everyone at all times with unsustainable measures".

Confidence in the economic response

The sustained economic growth and public finance management of the last two years ensured leeway to respond to the current international setting. The Prime Minister noted a "viruous management" that enables facing unpredictable crises with stability.

The situation’s evolution will be monitored. The Prime Minister guaranteed that "in the future, we will update the the State’s responses as required", in the event of longer lasting effects.

Structural reforms under way

The Prime Minister noted the advancement of structural reforms under way in the area of housing, migration, labour legislation, and administrative simplification.

Next week, the Council of Ministers will approve reforms to the rental scheme and succession law, particularly with regard to selling properties under undivided estate with the aim of increasing housing supply and freeing up properties that have remained unused for decades.

In the area of immigration, the 400 thousand files pending being completed and the adoption of a new framework, including the end of the manifestation of interest were noted, as well as the creation of a National Borders and Immigration Unit and new legislation. The new law on return is expected to be approved on Thursday.

In terms of labour legislation, the Government maintains the social dialogue process with dozens of meetings held and many standards receiving consensus. The Prime Minister stated that "it is possible to have a more flexible legislation without hurting the essential rights of workers".

As for administrative simplification, the Government will move forward with the end of the prior check by the Court of Auditors, replacing the prior control with oversight after the fact with the aim of expediting public decision and procurement.

A call on reforms

The Prime Minister called on parliamentary consensus to carry out the structural reforms, stating that "only by daring to be different will we obtain different results" and cautioning that "either we carry out these structural reforms now or we will risk suffering disruptions down the line".