Brazil. Government zeros federal taxes on gasoline days from the second round

O the government of the brazilian president, Lula da Silva, announced on Friday new measures to hold the rise of fuel prices, with increased subsidy for gasoline, 16 days from the second round of elections.

The measures will have a monthly cost of 5.2 billion reais, about 931.1 million euros, to hold the price of fuels in the country, such as zeroing federal taxes on gasoline, and extending the tax exemption from ethanol.

The Minister of Finance (Economy), Dario Durigan, explained that the measures announced are not electoral, but aim to avoid a rise in fuel prices in the domestic economy, amid the effects of war in the Middle East.

“It has no connection with the electoral moment. We started doing this a while ago and followed the pattern of not being partners in the war and not having an increase in fuel ", explained during press conference in Brasilia.

In the case of the derogation of federal taxes on gasoline, the measure will be valid for 30 days and may be reviewed or extended.

With this, the allowance goes from the current 0.63 cents (EUR 0.11 cents) to 0.89 cents (EUR 0.15 cents).

In addition, the Brazilian Government has today published a provisional measure (MP) that releases 6.1 million reais, about 1.09 billion euros for the Ministry of Mines and Energy to subsidize the production and import of diesel for road use.