How much are you really paying in fuel taxes? State may be earning more than it thinks

Idosa a olhar para preço dos combustíveis. Crédito: Foto AI

Fuel prices remain under pressure, in a context marked by international instability and rising energy costs. Faced with this scenario, the Government came forward with a discount on the Tax on Petroleum Products, in an attempt to alleviate the impact on consumers’ pockets.

The measure was received with some caution by consumer protection associations. According to , the final effect may not be as obvious as it seems at first glance.

The weight of taxes in the final price

Only after looking at the composition of fuel prices do you realize the size of the issue. According to the same entity, around 98 cents per liter of gasoline correspond to taxes and fees, including VAT, ISP and carbon tax. In the case of diesel, the value is around 84 cents per liter.

To these values ​​is also added the cost associated with the incorporation of biofuels, which contributes to the final price paid by consumers.

The “invisible” effect of ICMS

One of the points highlighted by DECO PROteste is related to the functioning of VAT. Whenever the base price of fuel increases, the amount collected in ICMS also increases automatically. This means that, even with mitigation measures, the State can continue to benefit from rising prices.

In the most recent case, the ICMS variation would have been almost completely offset by the discount applied to the ISP, resulting in a practically neutral revenue situation.

Positive measure, but insufficient

Despite recognizing that the ISP discount has an impact, DECO PROteste considers that the answer does not go far enough.

The association argues that, when fuel costs exceed two euros per liter, support should be reinforced, going beyond fiscal neutrality.

Call for structural changes

More than specific measures, the organization highlights the need for a deeper review of the fuel taxation model.

The current approach, based on temporary adjustments in times of crisis, is seen as insufficient to respond to a problem that recurs frequently.

What the experts say

Pedro Silva, energy analyst at DECO PROteste, cited by the same entity, considers that current price levels would justify more direct support to consumers.

Among the hypotheses highlighted is the use of public spending to offset part of the costs, similar to what already occurs in specific regimes such as professional diesel.

The association also recalls that, in 2022, faced with prices exceeding two euros per liter, the government moved forward with an exceptional reduction in the tax burden.

At the time, fuel taxes were about 12 cents per liter below current levels, which allowed for more direct relief for consumers.

Also read: