President says the government wants to exempt ICMS on diesel and asks for help from governors
The president (PT) stated that it will not allow an increase in food prices because of the war involving the United States, Israel and Iran.
Lula criticized adjustments considered abusive in fuel prices. He said that the federal government will adopt measures to contain the impact on diesel and asked governors for help.
The statement was made on Thursday (19 March 2026), during the opening of the Federative Caravan, in São Paulo. Lula said that Planalto is studying compensating States that reduce the ICMS (Tax on the Circulation of Goods and Services) on diesel and that he has activated bodies such as the Federal Police and the Federal Revenue Service to investigate increases considered undue.
The president stated that the price rise is not just justified by the international scenario. According to him, there are economic agents who try to profit from the war by raising values unnecessarily. He declared that the government will not accept automatic transfer of these costs to consumers, especially truck drivers.
Lula said he asked governors to eliminate or reduce the ICMS on diesel. In exchange, the federal government is willing to compensate for half of the loss in revenue. The measure, according to him, seeks to avoid a direct impact on transport and, consequently, on food.
The president also declared that the government tries to maintain price stability with subsidy policies and Petrobras’ actions. Even so, he recognized that there was an increase in fuels, including ethanol, which would not be directly related to the international conflict.
For Lula, the scenario requires coordinated action between the Union and States to protect the population’s purchasing power. He said the objective is to prevent war from affecting essential everyday items, such as breakfast and school lunches.
