Provisional measure should zero gasoline taxes to curb price escalation; tax exemption can take the average price from R$ 6.65 to R$ 5.76
The government of President Luiz Inácio Lula da Silva issued on Wednesday (13) a provisional measure (MP) with the aim of cushioning the global rise in oil prices for gasoline prices in the domestic market. The initiative comes in response to the commodity’s escalation, driven by tensions between the United States and Iran, which have compromised important maritime transport routes.
With the new measure, it is expected that federal taxes — Pis, Cofins and Cide — will be temporarily zeroed. Currently, these taxes represent about R$ 0.89 in the price of gasoline. Without them, the reduction could be approximately 13% in the price per liter, based on the average value of today (13) in Brazil, according to Petrobras, which is R$ 6.65 – and could fall to R$ 5.76.
The Planalto’s decision gains urgency after the president of Petrobras, Magda Chambriard, signaled last Tuesday that the fuel sold in the state-owned company’s refineries already had a lag and would need to be readjusted. The government, which initially intended to wait for the processing of a complementary bill in Congress, opted for the MP to ensure immediate effects on price formation.
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The central mechanism of the measure provides for the use of revenues from oil exports to subsidize fuels during international crisis cycles. In practice, the government uses the surplus collected from the recovered crude oil to compensate for the loss of taxes or to inject resources that stabilize the values at the pumps. Although the text needs parliamentary approval within 120 days, its force of law is instantaneous.
Behind the scenes, the strategy signals the Planalto’s fear with the inflationary impact of transport both on inflation rates and in the election period. The measure adds to a package of recent economic nods, such as the exemption from taxes on small imports and the reissue of the Desenrola program, aimed at renegotiating debts of the low-income population. By centralizing the management of fuel prices, the government tries to shield popularity and maintain economic stability in the face of a volatile external scenario.
