Brazil's economic team finalizes this afternoon the exact calculation of the cost of the subsidy to gasoline and diesel, which will be implemented by decree to be signed by President Lula. The assessment is that the final amount will be higher than the subvention that was provided for in the provisional measure that expired on Wednesday.
According to sources close to the government, the amount is expected to exceed initial estimates. The main reason is that the initial expectation considered a lower level for oil prices, which did not materialize.
In reality, what occurred was an escalation in oil prices, which have risen back toward $100 per barrel during this week. This increase in international prices contrasts with the projections that had been made previously for the subsidy program.
