The extension is initially valid for another 60 days, with the possibility of a new extension if external pressure on prices persists
The Palácio do Planalto announced, this Saturday afternoon (3rd), that the government renewed actions to contain fuel prices amid the rise in oil prices around the world for another two months.
According to the statement, the renewal of measures maintains in force the package of economic subsidies and regulatory instruments adopted in recent months to mitigate the effects of volatile oil prices on the international market, aggravated by the conflict in the Middle East. As ations include the extension of subsidies to producers and importers of diesel and gasoline, in addition to tax compensation mechanisms (cashback) and the continuation of specific reductions or zeroing of federal taxes on fuels.
The objective is to preserve price stability in the domestic market, avoid direct transfers to consumers and guarantee supply without inflationary impacts. “With the renewal, the government reaffirms its commitment to act preventively so that external fluctuations do not affect the cost of living of families and the competitiveness of the productive sector”, says the Planalto note.
The extension is initially valid for another 60 days, with possibility of a new extension if external pressure on prices persists. The total cost of the measures is estimated without net fiscal impact, offset by extraordinary revenues from the oil and gas sector.
Main measures
From June 1st, the government will start paying a subsidy of R$ 1.12 per liter of diesel oil to national refineries and fuel importers. This grant, funded entirely with federal resources, will replace two grants that end on May 31st.
At the same time, a decree from the Ministry of Finance establishes that, from June 1st, there will be a payment of subsidies to producers and importers of diesel oil, in order to offset tax costs related to the sale of said fuel. The subsidy will also be funded with federal resources and will, in practice, replace the exemption from federal taxes on diesel (PIS and Cofins), which also has a value of R$0.35.
The subsidy for LPG producers and importers has been extended until July 31st. And the federal resources to be used, initially estimated at R$330 million, were increased to R$660 million. This measure allows for a subsidy equivalent to R$11 per 13 kg cooking gas cylinder sold during the period, according to the government.
Also through decree, the government extended the PIS/COFINS exemption on aviation kerosene and biodiesel used in the mandatory mixture with road diesel sold at pumps until July 31st of this year.
*text produced with the help of AI
