The federal government has announced new measures to curb rising fuel prices, with tax cuts on gasoline and ethanol, in addition to a new subsidy for diesel.
In the face of escalating international oil prices, which have once again surpassed the $100 per barrel mark due to geopolitical tensions, President Luiz Inácio Lula da Silva formalized an energy market intervention package this Wednesday (9/9). The central objective of these measures is to protect the end consumer and prevent external volatility from compromising Brazilians’ purchasing power.
The Executive Branch’s actions focus on easing the tax burden and expanding financial support to the transportation sector. Starting September 10, a new tax rate policy will take effect, bringing immediate relief to drivers’ pockets and national logistics.
Tax Cuts and Diesel Support
The main change in the tax field affects gasoline, which will see a reduction of R$0.63 in PIS/Cofins. Simultaneously, the government has opted for a total exemption from charges on hydrated ethanol, ensuring a R$0.19 per liter discount. These tariff changes are temporary, extending until October 5.
In parallel, a Provisional Measure (MP) was issued, increasing the economic subsidy for diesel oil by R$1.00. The measure aims to ensure the stability of the product, essential for the country’s supply chain. The Ministry of Finance will be responsible for monitoring the global situation, with the possibility of adjusting or extending the benefit according to budgetary needs.
Regarding the need for state intervention, the Minister of Planning, Bruno Moretti, highlighted:
Given the rise in Brent prices, and the increase in diesel margins due to the prolonged geopolitical conflict, this MP provides for an additional R$1 subsidy for diesel so that prices remain stable
Impact and Outlook
The initiative seeks to replace the support previously granted via MP 1358, which provided aid of R$0.44 per liter of gasoline and ends its cycle on this date. With the new structure, the government expects to contain the pass-through of costs from the international crisis, especially after the escalation of hostilities in the Middle East.
President Lula reinforced that the package of subsidies to Petrobras and other players in the fuel chain is a strategic attempt to insulate the domestic market from the direct effects of external conflicts. The measure is seen as a temporary stabilizer, maintaining a focus on inflation control while the international scenario remains under observation.
