With fuel prices in Portugal often exceeding the equivalent of $8 per gallon in Portugal, the way you approach renting a car matters more than ever. The good news is that with a bit of planning, you can significantly reduce your costs—and have a better driving experience at the same time.
The first shift is mindset. Many North American travelers instinctively choose a larger vehicle, assuming it will be more comfortable. In Portugal, the opposite is usually true. Roads in historic towns are narrow, parking is tight, and rural and mountain routes can be winding. A smaller car is easier to drive, easier to park, and noticeably more fuel-efficient. In most cases, it’s the smarter choice.
If you’re not comfortable driving a manual transmission, look for hybrid options. These are increasingly common in Portugal, often come with automatic transmission, and can help reduce fuel consumption—especially in stop-and-go or town driving.
Electric vehicles are also a viable option. Charging infrastructure has expanded significantly across the country. You’ll find chargers at highway rest stops, in towns, and even at major grocery stores. For travelers planning shorter regional drives or staying within a specific area, an electric rental can work well.
Diesel vehicles are another option and tend to be more fuel-efficient than gasoline cars, particularly for longer drives. However, diesel fuel can sometimes be priced higher per liter, so it’s worth comparing before choosing.
Where you refuel also makes a difference. Highway service stations are convenient but typically the most expensive. A better approach is to fill up near local supermarkets—especially chains like Intermarché—where fuel prices are often about 10 cents per liter lower. Over a full tank, that adds up. And, there are good apps to find real-time fuel prices and the cheapest stations in Portugal include PortuGAS, Gasoil, and GASonline. One important detail: not all gas stations in Portugal accept foreign credit cards at the pump. In some cases, you may need to pay inside or use cash. It’s always a good idea to check ahead or use a fuel app to avoid surprises.
For toll roads, getting a transponder such as Via Verde is highly recommended. It allows you to move through tolls without stopping, saving time and hassle. In some cases, it can also be used for additional services like parking or even fuel payments at select stations, including Galp.
Driving in Portugal is one of the best ways to explore the country—but it rewards those who adapt. Choose the right car, think ahead about fuel, and use the local systems to your advantage.
Do that, and you’ll spend less—and enjoy the journey more.