Gasoline will fall by R$ 1.55 per liter with tax cuts, says government; see how it is in your state

In the first week after approval of measures by Congress, the fall was BRL 0.26

The MME (Ministry of Mines and Energy) calculates that the tax cuts approved by Congress should reduce the average price of gasoline in the country by R$ 1.55 per liter, compared to the record of R$ 7,390 reached the week before the validity of the measures.

In the first week of federal tax cuts, the average drop was R$0.26 per liter, according to the latest ANP (National Agency for Petroleum, Gas and Biofuels) price survey. The ICMS cut has been gradually applied by the states.

In relation to hydrated ethanol, the ministry expects an average cut of R$ 0.31 per liter, a reduction of 6.3%. In the week prior to the approval of the measures, the liter of fuel cost, on average, R$ 4,873.

The data released this Wednesday (6) by the ministry consider the values ​​practiced in the week of June 19 to 26.

The MME accounts consider the reclassification of fuels as essential goods, which limits the ICMS (Tax on the Circulation of Goods and Services) rate to 17% or 18%, and the exemption from federal taxes PIS/Cofins and Cide on gasoline and ethanol until December 31, 2022.

The measures are part of the federal government’s effort to curb inflation on the eve of elections and thus improve Bolsonaro’s popularity. The shortage of various items, such as fuel, is seen by members of the president’s campaign as the main obstacle to reelection.

The ICMS ceiling, however, is still debated in court by some states. The law that sets a ceiling for ICMS rates on fuel, energy, transport and telecommunications was sanctioned by President Jair Bolsonaro (PL) on June 23 after an intense dispute between states and municipalities, which warned of the loss of revenue, and the federal government.

Last Friday (6), Rio de Janeiro, Minas Gerais, Santa Catarina, Paraná, Rio Grande do Sul and Alagoas announced a reduction in the rate. Previously, São Paulo, Goiás, Espírito Santo and Rondônia had also confirmed cuts.

With the highest rates on gasoline before the ceiling was imposed, Rio de Janeiro and Minas Gerais have the greatest impacts estimated by the MME: R$1.94 and R$1.86 per liter, respectively.

According to Governor Cláudio Castro (PL), of Rio de Janeiro, at the beginning of July, the expectation was for a drop of up to R$ 1.19 in pumps at Rio de Janeiro’s gas stations. The state management projected that the average value of the liter would be around R$ 6.61.

In São Paulo, the expected reduction is R$ 1.36 per liter.

At the other end, Amapá and Mato Grosso could see the price of gasoline fall by up to R$1.30 per liter, according to estimates by the Ministry of Mines and Energy.

Source: Leaf