Federal government measure provides for a discount of R$ 1.20 per liter, divided between the Union and state governments
The states of Rio Grande do Sul (RS) and Sergipe (SE) officially joined a proposal from the Federal Government to subsidize the price of diesel oil imported in Brazil. The initiative, presented by the Ministry of Finance during a meeting of the National Council for Financial Policy (Confaz), seeks to guarantee price stability e national supply security. The measure will last for a maximum of two monthswith no possibility of extension.
At an event on Monday (30), the governor of São Paulo, Tarcísio de Freitas (Republicans), stated that this measure by the federal government seems “reasonable”but highlighted that it is necessary to see how it will be sewn.
“This idea seems reasonable to us, and we need to see how it will be put together, how it will be structured. But, in principle, the idea of the State of São Paulo is to adhere to it”, said Tarcísio.
The grant model establishes a total rebate of R$ 1.20 per liter of imported diesel. The cost will be divided equally:
- Federal Government: assumes R$0.60 of the value;
- State Governments: assume the other R$ 0.60.
In the case of states, payment will not be made directly, but rather through a monthly deduction in the States Participation Fund (FPE). The deducted value for each state will be proportional to the volume of imported diesel consumed in its territory.
ICMS relief
The current proposal replaces a previous Union idea, which suggested ICMS exemption. The old model was discarded as it was considered “unfeasible from a technical point of view” and for violate the Fiscal Responsibility Law.
For Rio Grande do Sul, the measure is seen as important for protection of agricultural production e contain inflation. The government of Rio Grande do Sul highlighted that the Cost predictability is keyespecially at a time when the state is going through a reconstruction process after the 2024 climate disaster.
The government of Sergipe reinforced that the action demonstrates a “cooperative dialogue between the Union and states” to maintain the balance of public accounts.
The measure will be formalized in the coming days through a Provisional Measure (MP) to be carried out by the federal government.
