Petrol and gas prices in Portugal can vary significantly, with unique factors influencing the costs in Madeira, an island with a distinct tax regime due to its remote location. This article explores the differences in fuel prices, the tax situation, and how fuel is transported to Madeira, highlighting the role of Repsol, the island’s largest petrol station network.
Petrol and Gas Prices in Portugal
As of August 2024, the average price of unleaded petrol in Portugal is approximately €1.80 per liter, while diesel costs around €1.65 per liter. These prices include all taxes and fees, reflecting the overall cost to consumers at the pump. Fuel prices in Portugal are influenced by global oil prices, taxes, and distribution costs.
The Specific Situation in Madeira
Madeira, an autonomous region of Portugal, has a unique tax regime due to its status as an outermost region of the European Union. This special status allows Madeira to offer various tax incentives, including lower VAT rates and reduced excise duties on certain goods, including fuel. Despite these incentives, fuel prices in Madeira are generally higher than on the mainland due to additional transportation and logistical costs.
Transportation of Fuel to Madeira
Fuel is not produced locally in Madeira; instead, it is imported from mainland Portugal and other regions. The transportation process involves shipping fuel via tankers, which is a complex and costly operation. The fuel is then stored in facilities on the island before being distributed to petrol stations. This logistical challenge contributes to the higher fuel prices in Madeira compared to the mainland.
Repsol: The Leading Petrol Station Network
Repsol is the largest petrol station network in Madeira..The company’s presence is crucial in maintaining the island’s fuel supply chain, given the logistical complexities involved in transporting fuel to Madeira.
Relations with Neighboring Islands
Madeira’s geographical proximity to the Canary Islands, another archipelago with a unique tax regime, creates opportunities for collaboration and shared logistical solutions. While each region operates independently, there are potential benefits in coordinating fuel transportation and storage to optimise costs and improve efficiency.
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