LPG subsidy will cost R$330 million; president increased cigarette tax to exempt QAV
The government of (PT) announced this Monday (6.Apr.2026) measures to lower the prices of LPG (liquefied petroleum gas), cooking gas, and QAV (aviation kerosene) after the start of negotiations between the USA, Iran and Israel.
The war raised the price of oil, which put pressure on values at Petrobras refineries. To minimize the impact on the consumer, the Lula government will pay for part of the cooking gas — through subsidies. The cost will be R$850 per ton of imported product. The benefit will serve companies in the sector, and there will be supervision by the ANP (National Agency for Petroleum, Natural Gas and Biofuels) so that they do not pass on the price drop.
The impact on public accounts will be R$330 million, according to the economic team. The measure is valid until May 31st.
For the airline sector, the Lula government announced two lines of financing for companies that operate regular flights. The Fnac (National Civil Aviation Fund) will be used to assist the sector. The economic team will provide:
- up to R$2.5 billion for each airline, with rates “similar” those used during the floods in Rio Grande do Sul, to purchase fuel;
- R$ 1 billion for short-term working capital, with conditions to be defined by the CMN (National Monetary Council) and guarantee from the Union.
The Minister of Ports and Airports, said that the 1st line of financing will make up to R$9 billion available to the airline sector. According to him, the announced measures aim to mitigate the impact on the cost of air transport.
ZERO TAX
The federal government also zeroed the PIS (Social Integration Program) and Cofins (Contribution for Social Security Financing) rates on aviation kerosene, with an impact of R$0.07 per liter of fuel. The value corresponds to R$30 million per month.
The Minister of Finance, said that, to compensate for the reduction in the tax on kerosene, the Lula government increased the IPI (Tax on Industrialized Products) on cigarettes. The rate will rise from 2.25% to 3.50%. It also raised the minimum price of the product from R$6.50 to R$7.50. The additional revenue will be R$1.2 billion.
