ICMS readjustment is responsible for the increase; gasoline tax rises R$ 0.10 per liter and diesel increases R$ 0.05
As of January 1, 2026, gasoline and diesel will have a price increase throughout Brazil due to the adjustment of the Tax on the Circulation of Goods and Services (ICMS), approved by the National Council for Finance Policy (Confaz). The measure raises the rate of gasoline by R$ 0.10 per liter, from R$ 1.47 to R$ 1.57, while diesel rises R$ 0.05 per liter, from R$ 1.12 to R$ 1.17.
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The readjustment frustrates consumers and the productive class, which historically charge a more balanced tax burden, especially on essential goods such as fuel. With the change, only in gasoline, consumers and entrepreneurs will pay about R$ 2.25 per liter in federal and state taxes.
Currently, the tax burden on gasoline represents approximately 36% of the final price to the consumer. Although the ICMS collection model on fuels was changed in 2022, when it started to be fixed by value per liter — known as the ad rem rate — Confaz’s decision maintains this format and only updates the monetary values of the tax.
The increase in fuel prices happens at the exit of the refinery and is consequently passed on to the final consumer, at the fuel pumps
In addition to the direct effect on prices, the ICMS adjustment tends to put pressure on logistics and transportation costs, especially in a country heavily dependent on the road modal. The increase should also generate indirect effects on inflation and on the prices of goods and services along the production chain, expanding the economic impact of the measure from 2026 onwards.
