Recently, President Jair Bolsonaro announced a plan to lower fuel prices in Brazil. The proposal is to eliminate the ICMS (Tax on Circulation of Goods and Services) on cooking gas and diesel, in addition to limiting the cost of Gasoline and ethanol. In this sense, some experts are saying that the measure can help reduce the price of cooking gas.
If you want to know more about the effects of ICMS reduction on gas price, just continue reading this article
see more
Ninth economy on the planet, Brazil has a minority of citizens with…
White goods: see which products the government wants to reduce…
Read more: Find out which will be the first state to issue the new RG
According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the reduction in the of the 13-kilogram canister can reach up to R$ 20 in some states, if the governors support the idea of SPEC. For example, in Rio de Janeiro, the average price can drop from R$101.76 to R$90.79. The government's Constitutional Amendment Proposal (PEC) also prevents the imposition of federal taxes (PIS/Cofins and Cide) on gasoline and ethanol.
The reduction in the price of LPG and other fuels is at the discretion of the governors, since the ICMS is a state program. In an attempt to persuade them, the Planalto Palace drew up a partial compensation plan in case of loss of revenue.
Thus, the first step to put the measure into practice is for the National Congress to approve a bill that would limit the ICMS levied on gasoline and other essential items to 17%.
According to the most recent data from the ANP, the most expensive 13 kg cylinder is in Rondônia (R$ 133.54). In the current situation, ICMS has a quota of 12%. Thus, it can be sold for R$ 120.06 (less R$ 13.48) with the reduction. However, the Brazilian Association of Class Entities of LP Gas Resellers (Abragás) warns that it is impossible to predict when the “discount” would reach the final consumer.
This is because it is very difficult to know when this reduction will be passed on from distributors to retailers. Since competition in this industry is fierce, a retailer will usually communicate price changes to customers quickly.
