In order to reduce the impact of the increase in oil prices on transportation and food supply chain costs, the Brazilian government decided to repeal two federal diesel taxes (Pis and Cofins). These sectors are among the most sensitive to fuel price fluctuations. In addition to the tax reduction, the decree also provides for the payment of subsidies to diesel producers and importers. The two measures together are expected to deliver a reduction of more than 10 euro cents per liter, or about 0.64 Brazilian real. These measures are part of a suite of measures aimed at combating Brazil’s speculation and unfair price increases. The package also includes new control tools to prevent practices that are harmful to consumers, such as holding stocks to create shortages and artificial price increases. The decision comes amid growing government concerns about inflation trends. In February, the Consumer Price Index (HICP) increased by 0.70% on a monthly basis. The main reason for this increase was the education sector (5.21%) with the start of the school year, followed by the transportation sector (0.74%); The transportation sector has not yet been affected by the Middle East conflict that started on February 28. On an annual basis, inflation fell to 3.81%, the lowest level in nearly two years. This slowdown may pave the way for a possible relaxation policy in the Selic interest rate, which the central bank has set at 15%.
Automobile Magazine – English
