With the increase in fuel prices today I guess it will be a quiet day at the fuel pumps for the next couple of days as most people filled up over the weekend.
In the space of two weeks, much has changed regarding the costs of filling up the fuel tank, whether for diesel (the most consumed) or gasoline, particularly 95 octane, the most consumed of this type because it is the cheapest. Some people do the calculations in their heads, and others only look at the big numbers, without really calculating what they will have to spend today, Sunday, or from tomorrow onwards, when both fuels will cost an arm and a leg.
And there are even those who predicted that prices in Madeira would very soon be higher than in the Azores, for example, since even last week gasoline and diesel prices were still higher than in Madeira. But is that really the case? We did the math and, firstly, it’s almost certain that the people of Madeira have been paying below-average prices for some time, secondly, the people of the Azores will surely only feel the significant increase around May, and thirdly, we are still paying less than we did 4 years ago when Russia invaded Ukraine.
First of all, it is necessary to mention that the Madeira vs. Azores debate, in addition to being frequent whenever the topic of fuel is discussed, was recently the subject of a fact-check in DIÁRIO.
Fuel prices rose again in March 2026, amid international tension due to the conflict in the Middle East and volatility in energy markets. A comparison between Madeira, the Azores, and mainland Portugal shows significant differences in prices and the pace of price increases, frequently raising questions among consumers about where they pay more and why. Analysis of the available data clarifies several points.
Where has the cheapest fuel?
For the week of March 16, 2026, the maximum prices indicated are as follows: in Madeira, unleaded 95 gasoline costs €1.656/liter and road diesel €1.700/liter. In the Azores, gasoline is at €1.635/liter and diesel at €1.521/liter. On the mainland, average prices are around €1.883/liter for 95 gasoline and €1.937/liter for diesel.
The comparison is clear: the Azores have the cheapest fuels in both categories. Madeira is in an intermediate position, while the mainland has the highest prices. In the case of diesel, the difference is particularly significant: a liter costs about €0.416 more on the mainland than in the Azores.
How much does it cost to fill a tank?
Considering a 50-liter tank, the difference becomes more noticeable. For gasoline, the cost is approximately €81.75 in the Azores, €82.80 in Madeira, and €94.15 on the mainland. For diesel, a tank costs around €76.05 in the Azores, €85.00 in Madeira, and €96.85 on the mainland. Thus, a driver on the mainland may pay more than €20 more per tank of diesel compared to a driver in the Azores, and almost €12 more compared to Madeira.
How have prices evolved since the beginning of the recent conflict?
Since the end of February, prices have increased mainly in Madeira and on the mainland. In Madeira, gasoline rose by about 7.2 cents per liter and diesel by about 18.7 cents. On the mainland, the increase was similar, with about 7 to 8 cents for gasoline and nearly 19 cents for diesel. In the Azores, the increases were smaller: about 3.7 cents for gasoline and 4.7 cents for diesel.
The main explanation lies in the price update system. In Madeira and on the mainland, prices reflect variations in the international market on a weekly basis. In the Azores, the maximum price is set monthly, which means that changes are more spaced out and sometimes appear smoother. Right now, for example, people in Madeira will pay €10.85 more for 50 liters of diesel than they did the week before the conflict began, while 95-octane gasoline costs €4.45 more per 50 liters in the tank.
Why has the price of diesel risen so much?
This topic has already been fact-checked in DIÁRIO. Therefore, in addition to recommending that article, it is important to emphasize that diesel has seen sharper price increases than gasoline across Europe. This is due to the increased demand for diesel in freight transport, agriculture, and various industrial sectors. Furthermore, Europe has lost a significant portion of its diesel imports from Russia since the war in Ukraine, increasing its dependence on suppliers from the Middle East, the United States, and India. Any instability in these regions tends to affect the price of diesel first, which is what is happening right now.
How much of the price is taxes?
Another relevant conclusion is the structure of the final price. In Portugal, a significant portion of the value paid by consumers corresponds to taxes. On the mainland, more than half the price of a liter of gasoline can result from taxes such as the ISP (Special Consumption Tax) and VAT. In Madeira, the tax burden is slightly lower, which helps explain why the final price may be lower than on the mainland.
For many, the price on the dashboard is a mystery composed only of oil and profit. The reality is quite different. Looking at 95-octane gasoline, the price breakdown reveals that the petroleum product (refinery) represents only about 37% to 39% of the final value.
On the mainland, where gasoline costs around €1.883/liter, the tax burden (ISP + VAT) is overwhelming: €0.98 per liter goes directly to public coffers. In other words, more than half of the price paid is tax. In Madeira, the scenario is slightly milder due to differentiated taxation: of the €1.656/liter, approximately €0.76 is tax (46% of the price).
In practice, this means that when filling a 50-liter tank, a driver on the mainland pays €49 in taxes, while in Madeira they pay €38. A difference of 11 euros per tank that arises almost exclusively from tax policy.
It can be concluded that the Azores continue to have the cheapest fuel in Portugal, followed by Madeira, while the mainland has the highest prices, but there are obvious ways to mitigate these increases. The State or the Autonomous Regions could simply cut, as the Madeira government did last week, the tax on petroleum products, but they could also cut VAT. And let’s not forget the strategic fuel reserves. There will still be room to make going to the gas station less of a tragedy.