The government has approved a new update to the Tax on Petroleum and Energy Products, with effect from March 23, which includes a temporary discount on rates applicable to diesel and gasoline. The measure occurs at a time of rising fuel prices, pressured by the international context.
According to what was published in a supplement to the Official Gazette of the Union, road diesel is now subject to a tax of 28.537 cents per liter, while unleaded gasoline is 45.644 cents per liter. These values already reflect the new discount decided by the Government.
It is important, however, to emphasize that these values only concern the ISP. Other components are added to the final price paid by the consumer, such as the cost of the product, marketing margins and ICMS.
New ISP discount is already in your accounts
The rate update includes an extraordinary discount of 2.6 cents per liter on diesel and 1.4 cents on gasoline. According to the Ministry of Finance, this adjustment aims to mitigate the impact of rising fuel prices.
With the application of VAT on this discount, the real effect for consumers will be slightly greater. According to the same source, the effective reduction amounts to around 3.2 cents per liter for diesel and 1.7 cents for gasoline. In practice, this is the approximate amount that consumers stop paying in the scenario in which there was no tax adjustment.
How much does it represent in the price per liter
The ordinance sets the ISP rate on the continent at 285.37 euros per 1,000 liters of diesel and 456.44 euros per 1,000 liters of gasoline. Translated, this corresponds to the 28.537 cents and 45.644 cents per liter already mentioned.
In the case of diesel, the rate also includes the consignment of road services, set at 11.1 cents per liter, intended for infrastructure financing. This means that, in tax alone, each liter of fuel already incorporates these values, to which the ICMS and other components that determine the final price at the pump are added.
Accumulated savings are now more significant
This new discount is in addition to previous measures. According to the Ministry of Finance, the total accumulated savings now amount to around 9.4 cents per liter on diesel and 5.1 cents on gasoline.
Without these reductions, the impact on price would be more significant. Estimates indicate that diesel could rise by around 15.5 cents per liter and gasoline by around 9.1 cents. The measure is therefore intended to function as a partial compensation mechanism in the face of rising prices in international markets.
International context continues to put pressure on prices
The evolution of fuels continues to be strongly influenced by external factors, namely instability in the Middle East. The closure of the Strait of Hormuz and market volatility have contributed to the rise in oil prices.
This scenario explains the increases recorded in recent weeks, in a trend that may continue in the short term. The Government’s decision comes precisely in this context of increasing pressure on prices. According to the order signed by the Secretary of State for Finance, Cláudia Reis Duarte, the objective is to mitigate the social and economic impact of the increase in fuel prices on families and companies.
Temporary measure dependent on price developments
The ISP discount is temporary and is subject to price developments. Its application occurs when the increase exceeds certain levels in relation to reference weeks.
In this case, the mechanism was activated in the face of increases exceeding 10 cents per liter. The objective is to return to consumers part of the additional revenue generated by VAT in a context of high prices. Despite the tax relief, the final price will remain dependent on developments in international markets. For now, as of Monday, a new balance between rising prices and reducing taxes comes into force.
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