Gas Bottle Prices Jump 20% as Retailers Demand Emergency VAT Cut to 6%

The price of butane and propane gas bottles in Portugal surged by roughly 20% at the start of April, with the standard 13 kg butane cylinder now costing up to EUR 38 — an increase of around EUR 3.50 from March — according to ANAREC, the national association of fuel retailers.

The 45 kg propane bottle, widely used for heating and cooking in rural areas, has risen to between EUR 130 and EUR 140, up from EUR 115–125.

Why Prices Are Surging

ANAREC attributes the spike to the ongoing impact of the Middle East conflict on global energy commodity prices. Liquefied petroleum gas (LPG) prices are indexed to international benchmarks that have climbed steadily since the escalation around the Strait of Hormuz in early March.

Unlike piped natural gas or electricity — where regulated tariffs set by ERSE provide a buffer — bottled gas pricing is fully liberalised in Portugal. Retailers set their own prices, which means wholesale cost increases pass through to consumers almost immediately.

Retailers Push for VAT Relief

ANAREC has called on the government to cut VAT on gas bottles from the standard 23% to the reduced 6% rate, arguing that bottled gas is an essential good for hundreds of thousands of households. The association notes that many elderly and low-income families in rural Portugal rely exclusively on bottled gas for cooking and water heating, with no access to piped natural gas.

"A 13 kg bottle that costs EUR 38 includes almost EUR 7 in VAT alone," ANAREC president said. "Reducing VAT to 6% would immediately lower the price by around EUR 5 per bottle — meaningful relief for families already squeezed by fuel and food inflation."

Government's Response: Botija Solidária Extended

Rather than cutting VAT, the government has opted to expand the existing Botija Solidária (Solidarity Bottle) programme. The subsidy has been increased to EUR 25 per bottle for eligible vulnerable families, up from EUR 15 previously, and will run for three months through June 2026.

Eligibility is determined via the Social Energy Tariff (Tarifa Social de Energia) criteria — the same means test used for electricity bill discounts. Approximately 800,000 households qualify, though take-up has historically been lower than expected due to awareness gaps.

How Bottled Gas Fits Into Portugal's Energy Mix

An estimated 2.5 million Portuguese households use bottled gas in some form. While piped natural gas networks cover most of Lisbon, Porto, and the Algarve coast, large parts of the interior and the islands rely entirely on bottled LPG. For these communities, the 20% price jump is not a marginal cost increase — it directly affects daily cooking and hot water costs.

The price surge also comes at a time when Portuguese consumers are already absorbing record diesel prices above EUR 2 per litre and elevated electricity costs, even as parliament has lowered the ISP fuel tax floor to provide some pump-price relief.

What Consumers Can Do

• Check eligibility for Botija Solidária: If you receive the Social Energy Tariff on electricity, you likely qualify for the gas bottle subsidy. Apply via your municipality or the DGEG (Direcção-Geral de Energia e Geologia) portal.
• Compare prices: Bottled gas prices vary between retailers. DECO Proteste recommends checking multiple suppliers before ordering delivery.
• Consider alternatives: Electric induction hobs and heat-pump water heaters eliminate gas dependence entirely and are eligible for energy efficiency subsidies under the PRR recovery plan.