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[BUSINESS] · Brazil · 100 sources

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Brazil expands fuel subsidies and tax cuts to combat rising oil prices

The Brazilian federal government has announced an expansion of fuel subsidies and tax reductions to mitigate the impact of rising international oil prices caused by geopolitical conflicts in the Middle East. The package, estimated to cost approximately R$ 7 billion per month, includes a reduction of R$ 0.63 per liter in PIS/Pasep and Cofins taxes on gasoline, bringing the federal tax burden to R$ 0.16 per liter. Additionally, federal taxes on hydrated ethanol will be temporarily zeroed.

To support the transport sector, the government authorized an initial economic subsidy of R$ 1 per liter for road diesel. This measure will be regulated by the Ministry of Finance and reviewed every 30 days. The diesel subsidy is expected to cost roughly R$ 5 billion in September alone.

Alongside fuel measures, the government released R$ 375 million in extraordinary credits for the National Program for Strengthening Family Agriculture (Pronaf) to support food production. The total extraordinary credit authorized for fuel subsidies and family farming amounts to R$ 6.98 billion.

Entities

ANP · Agência Nacional do Petróleo, Gás Natural e Biocombustíveis · Brasil · Brazil · Brazilian Congress · Brazilian federal government · Bruno Moretti · Davi Alcolumbre · Luiz Inácio Lula da Silva · Ministry of Finance · Ministry of Mines and Energy · Ministry of Planning and Budget

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Lula reduz tributos da gasolina e subsidia diesel [www.diariodocentrodomundo.com.br]
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