The Ministry of Finance announced, at the end of last week, that in December there will be a reduction in the ISP discount by 3.9 cents per litre of diesel and 2.4 cents per litre of petrol, taking into account the fall in prices.
In a statement, the ministry announced, "the mechanism applicable in the ISP equivalent to a decrease in the VAT rate from 23% to 13% and the compensation mechanism via the ISP reduction of the additional VAT revenue, resulting from variations in fuel prices, remain in force".
Thus, taking into account the evolution in the price of diesel and gasoline, "these temporary measures result in a reduction of the ISP discount by 3.9 cents per litre of diesel and 2.4 cents per litre of gasoline, representing a discount of 17.1 cents per litre on diesel ISP and 15.4 cents per litre on petrol ISP", reads the same note.
Also, "the carbon tax update will remain suspended until the end of the year", and "considering all the measures in force, the reduction in the tax burden is 27.3 cents per litre of diesel and 24.7 cents per litre of petrol".
The mechanism applied by the Government for discounts implies that a decrease in the price of fuel leads to an increase in the ISP, due to the drop in revenue from VAT.