Portuguese Prime Minister Luís Montenegro has urged an end to the international turmoil behind soaring oil prices, warning that consequences are being felt in Portuguese homes, businesses and shops as frustration over the cost of living spills onto the streets.
The PM’s appeal came on Sunday, October 11, just around 24 hours after thousands marched against rising living costs and the housing crisis. By Monday, agricultural leaders were outside Parliament demanding another €140 million in support, while it emerged that the fuel crisis had added more than €3 million to Portuguese military supply contracts.
Speaking at celebrations marking the centenary of São João da Madeira, in the Aveiro district, Montenegro described the situation as an act of “senselessness” that is damaging economies and ordinary people.
“We must resolve this issue in the coming weeks, in the near future, this senseless situation in which we are harming economies and people in general, from which nobody is benefiting, and break this deadlock,” he said.
Higher oil prices, he warned, were also feeding through to other products as transport costs increased.
“Every economy in the world is experiencing some effect from the rise in the price of oil, and consequently, of fuel, and many other products whose prices are rising,” Montenegro said.
Montenegro blamed geopolitical conflict and trade disputes, saying he had raised the issue at the United Nations and with European partners.
More than €2 a litre
For drivers in Portugal, the scale of the problem is plain enough. According to figures reported by ECO on Monday, October 12, diesel was expected to cost around €2.15 a litre and standard unleaded petrol €2.126, despite government adjustments to fuel taxes.
That puts the cost of a 50-litre fill-up at approximately €107.50 for diesel or €106.30 for petrol. For commuters who rely on their cars, particularly in regions where public transport is limited, such bills are particularly difficult to avoid.
The government has extended an extraordinary reduction in fuel duty, known as ISP, intended to offset additional VAT revenue generated by higher pump prices. The discount is reviewed as fuel prices change and is due to remain available until the end of the year.
Higher transport costs can also find their way into the price of groceries and services, stretching budgets already burdened by housing costs. Annual inflation reached 3.6% in September, while the government expects prices to rise by an average of 2.9% in 2026.
Thousands say they cannot afford to live
Portugal’s frustration was on display across the country on Saturday, October 10, when thousands joined demonstrations organised by the platform “Não Dá Mais Para Viver Assim” – “We Can’t Go On Living Like This”.
In Lisbon, protesters filled Largo do Intendente before marching along Avenida Almirante Reis. Around 1,500 people also gathered in Porto, according to police figures reported by Lusa, while protests were also organised in Aveiro and Braga.
Protesters described wages swallowed up by rent, food and other essentials, with younger people unable to afford homes of their own.
“The salary is not enough to live on” was one of the messages carried through the demonstrations. For many, the problem is not unemployment, but the growing difficulty of making ends meet even while working. In other words, having a job is not a guaranteed path to dignified living conditions.
Organisers want controls on the prices of essential goods and fuel, limits on rent increases and taxes on exceptional profits in sectors such as banking, energy and retail. Their platform brings together dozens of organisations, including trade unions and housing campaigners.
The protests also brought political criticism of the government’s proposed 2027 State Budget. Left Bloc politician José Manuel Pureza accused a small group of people of making extraordinary profits while more households struggled to pay their bills.
Livre’s Isabel Mendes Lopes accused Montenegro of being out of touch, pointing in particular to a government definition of moderate rent that can reach €2,300 a month. For households living on modest Portuguese wages, she argued, such a figure bears little resemblance to everyday reality.
Montenegro did not directly address Saturday’s demonstrations in his speech. He did, however, criticise unnamed figures whom he accused of seeking to bring unnecessary social instability into Portugal, insisting there was a difference between discussing problems and trying to create unrest.
“It is one thing to talk about problems; it is quite another to want to import instability that has no place here,” he said.
He insisted that Portugal remained a country of “economic, financial, political and social stability”.
Farmers demand action now
The popular discontent reached Parliament’s doorstep on Monday, when around 150 leaders of agricultural and forestry associations travelled to Lisbon demanding urgent government support.
The Confederation of Portuguese Farmers (CAP) wants an additional €140 million to help producers absorb soaring costs for diesel, fertilisers and energy. Its president, Álvaro Mendonça e Moura, said the sector was not asking for handouts, but for a fair chance to compete with producers abroad.
“What we want is not subsidies; what we want is for Portuguese farmers to be able to compete with farmers from other countries,” he said.
CAP argues that Spanish farmers have received considerably more government assistance, giving them an advantage when selling competing products in the same markets.
Mendonça e Moura said Spanish support for agricultural diesel amounted to 20 cents per litre, compared with 10 cents in Portugal. CAP says that gap, combined with higher fertiliser and electricity bills, is threatening the viability of farms, especially smaller holdings with little room to absorb extra costs.
CAP also wants fuller use of European emergency support mechanisms and seasonal electricity contracts. Its delegation delivered a basket of Portuguese produce to the prime minister’s official residence to underline what is at stake. Further protests could follow if its demands are ignored.
Agriculture Minister José Manuel Fernandes defended existing measures on Monday and said more than €162 million in income support would be available in 2027, subject to approval of the State Budget. But the timing is part of the dispute: farmers say the extra pressure is being felt now, ahead of future planting and production decisions.
Even the Armed Forces feel the squeeze
The fuel bill is also becoming a problem for an institution rarely associated with household-style budgeting: the Portuguese Armed Forces.
According to CNN Portugal, revised contracts for Navy and Air Force fuel supplies have increased in value by more than €3 million, forcing the Ministry of Defence to acknowledge that routine activities are being affected.
The Navy is facing particularly sharp pressure, with marine diesel prices doubling since the beginning of 2026. The service now estimates it will need around €7.9 million for operational fuel this year, roughly €2.4 million more than the government had previously authorised.
A three-year Petrogal contract for marine and other diesel was revised from €16.62 million to €18.22 million, while a separate Navy road-fuel contract rose by around €362,000. An Air Force road-fuel agreement with Repsol increased by more than €1 million, although the documentation does not establish how much of that change reflects price rather than quantity.
The Ministry of Defence admitted that rising prices were having “some impact on day-to-day activity”, requiring the military to “optimise travel and activities in other areas of routine operations”.
It stressed that operational commitments remained within planned levels and that the Armed Forces retained the capacity to respond when needed. Nevertheless, the figures offer a stark illustration of how far the fuel-price shock has spread.
“We must remain resilient”
For Montenegro, the answer to the ongoing crisis rests partly on Portugal’s economic resilience. He pointed to the prospect of a fourth consecutive budget surplus and public debt falling below 85% of GDP next year, arguing that sound finances leave the country better prepared for external shocks.
He also defended cuts to personal and corporation tax, pension increases and higher support for low-income elderly people, saying stronger businesses could invest more and ultimately pay better wages.
“We must remain resilient; we must stay strong in the face of difficulty,” the prime minister said.