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Politics · Funchal · 18 September 2026

Liberal Initiative advocates ISP cut instead of fuel subsidies

The IL proposes a significant reduction in the Tax on Petroleum and Energy Products as an alternative to government support measures.

Liberal Initiative advocates ISP cut instead of fuel subsidies

The Liberal Initiative (IL) advocates for a substantial reduction in the Tax on Petroleum and Energy Products (ISP) as a response to rising fuel prices. This stance contrasts with the continuous creation of support measures targeted at specific sectors, recently announced by the Regional Government.

Liberal MP Gonçalo Maia Camelo argues that reducing the ISP would be a "simpler, more transparent" solution with broad application, directly impacting consumers. The IL maintains that the current compensation policy requires constant renewal and suggests that aligning fuel prices with those in Spain should guide a reduction in the region's tax burden.

The party also recalls presenting a proposal to reduce the ISP in the Assembly of the Republic and disputes the VAT reduction on fuels advocated by other parties, deeming it contrary to European regulations. Instead, the liberals champion a structural reduction of the ISP to lower prices without resorting to new compensation mechanisms.

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