Portugal to tax oil companies' windfall profits in 2026

Portugal's government approved a request for legislative authorisation to create a temporary 33% levy on oil sector profits in 2026, applying only to gains exceeding the 2024-2025 average by more than 20%. The measure targets crude oil and refining companies, citing extraordinary profits linked to rising fuel prices that have hurt households and businesses. Revenue will fund support for vulnerable consumers and investment in reducing fossil fuel dependency. A similar EU-wide windfall tax ran in 2022-2023, raising about €8.3 million in Portugal. Galp recently reported a 44% profit rise to €812 million in the first half of 2025.