President Lula signed this Wednesday a decree reducing taxes on gasoline by R$0.63 per liter. The measure, valid until October 5, brings the tax burden on the fuel to R$0.16 per liter. Lula also signed a provisional measure authorizing a R$1 per liter subsidy for diesel for producers and importers who join the program, with the discount being passed on to the sale price.
The government announced the measures to contain the impact of rising fuel prices caused by the surge in oil prices in the international market. The Brent-type barrel returned to exceed US$100 amid the worsening of the war in the Middle East. More than 25% of the diesel consumed in Brazil is imported, which makes the country vulnerable to fluctuations in international prices.
The measures are temporary and may be altered or interrupted according to market conditions, resource availability, and the evolution of prices and supply conditions. The diesel subsidy and the tax reduction on gasoline and ethanol may be adjusted according to the market situation.
