With the new rise in oil prices, caused by the return of United States attacks on Iran in the Middle East, the federal government hit the brakes on withdrawing benefits from fossil fuels. Therefore, the partial or total removal of the gasoline subsidy, scheduled for this week, has been postponed.
Attacks in the Middle East force government to postpone end of gasoline subsidy
With the new rise in oil prices, caused by the return of United States attacks on Iran in the Middle East, the federal government hit the brakes on withdrawing benefits from fossil fuels. Therefore, the partial or total...
“Oil rose again to US$80 and then we have to cautiously adopt the withdrawal of subsidies”, said the Minister of Finance, Dario Durigan, to Rádio Gaúcha. “This week I was going to announce the withdrawal of gasoline, [but] I will analyze the withdrawal next week, because the price of gasoline is already having a different impact [than] what I was predicting”, he added.
In May, the government announced a subsidy for gasoline imported or produced in Brazil. Initially the measure was expected to last two months, to contain the effects of the war on oil prices. The value of the subsidy is R$0.44 per liter of gasoline, reports g1.
In addition to maintaining the subsidy, the Management Committee of the Chamber of Foreign Commerce (Gecex-Camex) decided that the export tax on oil, currently set at 12%, will be maintained for another 60 days, Folha and Revista Fórum report. The tax was created to offset the federal tax cut on diesel, another measure taken to mitigate the price rise caused by the conflict in the Middle East.
On July 1st, with oil prices at levels similar to those recorded before the start of the war, on February 28th, the government removed the subsidy of R$0.35 per liter of diesel. On the same day, Petrobras announced a reduction of the same amount in the price charged at its refineries, therefore preventing the end of the subsidy from having an impact on consumers.
In addition to subsidies for diesel and gasoline, the government granted subsidies for cooking gas and aviation kerosene (QAV), in addition to opening credit lines for airlines to avoid increases in ticket prices.
See, CNN Brasil, CBN, Poder 360.
Source:
ClimaInfo
