Portugal · Country watch

Fuel Tax Discount Extended, School Strikes Disrupt

Portugal extends fuel tax discount to year-end; strikes close schools, affecting operations.

Florent Kalfon · October 19, 2026 · 11 sources

The picture Deteriorating

Business conditions in Portugal are deteriorating as school strikes disrupt education and housing protests continue, affecting operations and local businesses.

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In this briefing Imposto sobre Produtos Petrolíferos e Energéticos · Escola Secundária José Gomes Ferreira · Escola Secundária Infanta Dona Maria · Lisbon · Porto · PSP

Regulation

Energy
Logistics

Portugal extends ISP fuel tax discount to year-end

A gas station on the side of the road — Ellienore B. / Unsplash

Portugal has extended the discount on the Imposto sobre Produtos Petrolíferos e Energéticos (ISP) until the end of the year, according to Diário de Notícias Madeira. The law, published in the Diário da República, returns the additional VAT collected by the state due to rising fuel prices. The measure, approved unanimously by parliament on October 9, aims to alleviate the financial burden on consumers and businesses amid high fuel costs.

Impact Transport and logistics companies benefit from reduced fuel costs until year-end.

Sources: Diário de Notícias Madeira (dnoticias.pt) ↗, RTP ↗

Disruption

Public sector

School strikes in Lisbon and Coimbra close institutions

Non-teaching staff strikes have led to the closure of schools in several districts, including Lisbon and Coimbra, Diário de Coimbra reports. In Lisbon, classes at Escola Secundária José Gomes Ferreira were suspended, while in Coimbra, Escola Secundária Infanta Dona Maria also shut down. The strike reflects ongoing disputes over working conditions and pay, affecting the normal operation of educational institutions.

Impact Educational institutions face operational disruptions, affecting staff and students.

Sources: Jornal Económico ↗, Diário de Coimbra ↗

Internal tension

Public sector
Tourism

Housing protests continue in Lisbon and Porto

Protesters have decided to remain camped in Lisbon and Porto despite police demands for removal due to licensing issues, Público reports. Demonstrators formed human chains around tents in Lisbon, while in Porto, they used helmets for protection. The protests are part of a broader movement addressing the housing crisis, which has seen increasing mobilization across the country.

Impact Tourism and local businesses in protest areas face disruptions due to ongoing demonstrations.

Sources: Público ↗