Brazil reinstates crude oil export tax affecting Petrobras and PRIO

The Brazilian federal government has confirmed the reinstatement of a 12% export tax on crude oil. According to a decision by Camex, the tax will take effect on September 8 and remain in place for 60 days.

This measure is expected to impact the profitability of major oil producers, specifically Petrobras and PRIO. Petrobras has previously reported significant financial impacts from such taxes, noting a disbursement of approximately R$ 4.9 billion related to export taxes in the second quarter of this year. For PRIO, investors are monitoring potential effects on cash flow, operating margins, and dividend distribution capabilities due to its high exposure to international markets.

The decision has heightened concerns regarding regulatory predictability in Brazil. The Brazilian Petroleum Institute (IBP) and other industry players have argued that frequent changes in taxation can hinder long-term investments. While a court injunction previously suspended the collection for certain companies, the government has moved forward with the renewal.