Gasoline, Diesel and cooking gas have changed prices TODAY: find out everything!

Brazilians should keep an eye on changed prices for essential items! List includes gasoline, diesel, cooking gas and other fuels.

Starting this Thursday, February 1st, Brazilians face a new reality at gas stations and when purchasing cooking gas.

The ICMS on gasoline, diesel and cooking gas undergoes a significant increase, marking the end of a series of tax exemptions and tax exemptions initiated in 2021 to combat high inflation. To check out more details, just keep reading!

See why fuel prices have changed! Credit: plasticaxe.

The history of tax changes in Brazil

Since March 2021, Brazil has witnessed at least 13 significant announcements of changes to taxation on gasoline, diesel, ethanol and CNG, with seven of these changes occurring in 2023 alone.

These changes were in response to economic challenges facing the country, including the COVID-19 pandemic and the impact of the war in Ukraine on oil prices.

Check also: Gasoline, Ethanol and Diesel have CHANGED prices: has the value decreased or increased?

The impact of the ICMS increase on changed prices

The increase in ICMS announced by the state and DF finance secretaries in October represents a significant milestone in the cycle of exemptions and re-encumbrances that began in 2021.

This increase reflects the need to balance public accounts after a period of tax relief for consumers.

How are prices changed in practice?

So that you can better understand the changed prices of gasoline, diesel and other fuels, below we will show a retrospective since 2021:

March 1, 2021: Reduction to zero of PIS/Cofins rates for diesel oil A, with an impact of a reduction of R$0.3058 on diesel oil B. May 1, 2021: Return of PIS/Cofins rates for oil diesel A, resulting in an increase of R$0.3163 in diesel B. March 11, 2022: Reduction to zero of PIS/Cofins rates for diesel oil A and biodiesel, reducing R$0.3312 in diesel B. Sanction of the unified ICMS project for fuels. June 23, 2022: Zero PIS/Cofins and CIDE for gasoline A, reducing R$ 0.6869 on gasoline C. Sanction of the ICMS limit on fuels. March 1, 2023: Return partial incidence of PIS/Cofins on gasoline A and ethanol, with impacts of R$ 0.3485 on gasoline C and R$ 0.02 on ethanol. May 1, 2023: ICMS on diesel moves to the ad rem modality, resulting in an increase in the tax burden in most states. June 1, 2023: ICMS on gasoline goes to ad rem, increasing the tax burden in most states. July 1, 2023: Return of the incidence of CIDE and increase in PIS /Cofins on gasoline A, impacting R$0.6889 on gasoline C and R$0.2418 on hydrated ethanol. September 5, 2023: PIS/Cofins increase for diesel oil A and biodiesel, resulting in an increase of R$ 0.1024 on diesel B. October 1, 2023: Increase in PIS/Cofins for diesel A and biodiesel, resulting in an increase of R$ 0.0187 on diesel B. October 4, 2023: End of validity of the provisional measure which reduced PIS/Cofins for diesel until December 31, 2023. January 1, 2024: Complete reduction of PIS/Cofins for diesel A and biodiesel, impacting R$0.3271 on diesel B. February 1, 2024: ICMS increase for gasoline and diesel, with increases of R$1.3721 per liter for gasoline and R$1.0635 for diesel, impacting R$0.1521 on gasoline C and R$0.1179 on diesel B.

What is the new fuel price?

Despite the significant adjustment in ICMS, no major changes are expected in the short term. However, adjustments to tax amounts may still occur, especially in the ad rem model, which would directly impact consumer prices.

As for the price of fuel at gas stations, we cannot establish an official value, as the amounts vary according to each state.

Also check out: Will gasoline be replaced by another fuel? Lula government wants to invest R$250 billion, find out more

Prepare your pocket for readjustments

The increase in the prices of gasoline, diesel and cooking gas reflects the complexity of Brazil’s fiscal and economic policies.

For consumers, it is essential to understand these dynamics to prepare for the impacts on the family budget.

The fiscal changes over the last three years show a delicate balance between inflation control and revenue needs, a constant challenge for the government and the population.

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