Investing.com — Brazil’s government extended measures aimed at limiting fuel price increases for an additional two months, keeping subsidies and tax relief programs in place through July 31, Bloomberg reported on Saturday.
The extension comes as authorities seek to shield consumers from higher energy costs linked to volatility in global oil markets following the conflict in the Middle East.
According to a government statement, emergency measures that were due to expire on May 31 will now remain in effect until the end of July.
For diesel, the government will maintain a subsidy of 1.12 reais ($0.22) per liter for domestic refiners and fuel importers beginning June 1. Officials said two subsidy programs introduced in April will be merged into a single mechanism intended to support price stability.
The Finance Ministry also announced a separate subsidy for diesel producers and importers to offset tax-related costs associated with fuel sales. The payment will replace a previous exemption from PIS and Cofins taxes on diesel and will carry the same value of 0.35 reais per liter.
The government also extended support measures for liquefied petroleum gas (LPG), increasing federal funding for the program from 330 million reais to 660 million reais.
The subsidy is expected to provide support of 11 reais per 13-kilogram cooking gas cylinder sold during the period.
Link: https://ca.finance.yahoo.com/news/brazil-extends-fuel-price-relief-003811314.html