"Given persistent global political instability, we have opted to further reduce the ISP to help lower fuel costs for families and businesses. As of 18 May, this measure yields a reduction of eight to 13 cents for both gasoline and diesel," stated the Secretary for Finance, Planning, and Public Administration (PSD/CDS-PP/PPM).

Duarte Freitas addressed the Regional Assembly in Horta during a formal inquiry by the BE party regarding rising fuel prices and their effects on the economy and cost of living.

The Regional Secretary outlined a package of measures to address escalating fuel prices, aiming to immediately reduce costs for families, businesses, and vulnerable sectors; safeguard those facing heightened risks; and accelerate regional adaptation to reduce energy dependence.

According to the Secretary, the Azorean government will provide “extraordinary support for the cost of agricultural diesel, amounting to 10 cents per litre,” and establish “temporary support” to “offset increased costs” within the fisheries sector.

Duarte Freitas also announced the implementation of a “measure to combat material deprivation,” involving the creation of a “support mechanism for access to food and certain health products” aimed at “the most disadvantaged families.”

The Regional Secretary stated that the fuel allowances allocated to humanitarian firefighter associations will undergo an extraordinary review in order to “safeguard operational capacity throughout 2026.”

Duarte Freitas pledged liquidity support for businesses through incentives for the “conversion of fixed-term employment contracts into permanent contracts,” aiming to ensure “labour stability during this difficult period.”

“In parallel, we will fast-track the call for proposals under the Azores 2030 program to boost energy efficiency within the business sector, private social solidarity institutions, and the housing sector—thereby combating energy poverty and promoting solutions that yield lasting reductions in consumption and costs,” the government official added.

The Secretary of Finance acknowledged that he would trigger the housing loan repayment support program (CREDITHAB) should benchmark interest rates rise, and highlighted that the cost of the basic shopping basket had decreased in April.

“I can report here today that the latest price monitoring data—covering the month of April—revealed a decrease of 2.53% compared to March, and a decrease of 0.7% compared to December 2025,” Duarte Freitas noted.

In May, the price of gasoline in the Azores rose by 21.7 cents per litre; the price of diesel by 36.3 cents per litre; and the price of butane gas by 36.9 cents per kilogram.

On 28 April, the Regional Secretary of Finance confirmed that the Azorean executive would maintain the fuel tax (ISP) discount—originally applied in April—throughout May, despite fuel prices rising by more than 20 cents per litre. In April, the Government of the Azores announced a 3.5-cent-per-litre discount on gasoline and a 4-cent-per-litre discount on diesel to mitigate rising prices.

The rise in fuel prices is occurring amid intense geopolitical tension in the Middle East and following the United States' attack on Iran, with oil prices under pressure from the closure of the Strait of Hormuz and volatility in international markets.