Brazil’s Lula Signs Measures to Cut Fuel Taxes and Subsidize Diesel Ahead of Election
The package adds 6.6 billion reais in subsidies and tax cuts as Lula seeks to ease fuel costs and inflation before October's vote.
- On Wednesday, President Luiz Inacio Lula signed an executive order allocating 6.6 billion reais for fuel subsidies as a gasoline subsidy expired, providing 5.6 billion reais for diesel and 998 million reais for production and imports.
- Global crude prices surged after Israel and Iran began conflict in late February, halting most shipping through the Strait of Hormuz; Brent crude futures breached $100 a barrel on Wednesday for the first time since July.
- According to Ita BBA market analysis, Brazilian diesel is 28% cheaper than international prices while gasoline is 21% cheaper. Tax cuts on ethanol and gasoline blends take effect for 30 days starting Sept 10.
- Ahead of the October election, President Luiz Inacio Lula seeks to cushion consumers against higher fuel costs while preventing trucker strikes that could spike food inflation, facing challenger Flavio Bolsonaro, son of Former President Jair Bolsonaro.
- Although Brazil is a major producer and exporter of crude oil, revenues have surged this year due to higher international prices. The government continues extending price control policies introduced at the conflict's start.
41 Articles
41 Articles
Lula cuts Brazil fuel taxes ahead of election as war drives oil above $100
Lula signed tax cuts and a diesel subsidy to reduce fuel prices before Brazil's October election. The move aims to soften the impact of war-driven oil prices, though economists see a strong electoral motive.
The measure arises in a context of pressure on fuel prices caused by the war in the Middle East, with support to cover diesel, petrol and other derivatives.
Brazil’s Lula signs measures to cut fuel taxes and subsidize diesel ahead of election – WTOP News
RIO DE JANEIRO (AP) — Brazilian President Luiz Inácio Lula da Silva signed a decree and a provisional measure Wednesday aimed at lowering fuel prices, weeks ahead of the presidential election and as the U.S.-Iran war drives up the cost of filling the tank. The cost of fuel is a particularly sensitive issue for voters,...
The Toronto Star
Brazil’s Lula signs measures to cut fuel taxes and subsidize diesel ahead of election
RIO DE JANEIRO (AP) — Brazilian President Luiz Inácio Lula da Silva signed a decree and a provisional measure Wednesday aimed at lowering fuel prices, weeks ahead of the presidential election and as the U.S.-Iran war drives up the cost…
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