Institute says that measure increases regulatory risk and could affect investments; defends adjustments to tax exemptions and fuel subsidies
O (Brazilian Institute of Petroleum, Gas and Biofuels) criticized, on Wednesday (18.mar.2026), the of the federal government to contain the rise in fuel prices, in particular the creation of a 12% on oil exports and changes in diesel policy.
According to the association, although the international scenario is one of pressure on prices due to conflicts in the Middle East, the solutions adopted can create distortions in the sector.
“The increase in royalty collection and the increase in the share of oil profit from production sharing due to the rise in the price of a barrel of oil, making, in fact, the export tax a double taxation, even harmful to attracting long-term investments”he stated in a note.
The evaluation refers to the Provisional Measure which institutes taxation on exported oil. For IBP, the lack of predictability increases regulatory risk and reduces the competitiveness of Brazilian products in the international market.
The institute also states that the sector is already highly taxed, with mechanisms such as royalties and special participation, which would make the new charge a form of double taxation.
The entity states that changes considered “case studies” in the rules can affect long-term investment decisions, with an impact on future production, creation jobs and the Union’s revenue.
In relation to diesel, the IBP that the PIS/Cofins exemption can help contain consumer prices, but advocates adjustments. One of the points is the need to extend the benefit to oil used by refineries, to avoid accumulation of tax credits.
The institute also criticizes proposals that favor only imported diesel, which, according to the entity, would create unequal competition and discourage national production. Furthermore, it assesses that the measure would have limited effect without the participation of the States in reducing the state tax, ICMS (Tax on Circulation of Goods and Services).
