The government is expected to announce a gradual reduction in fuel subsidies, according to Valor.

The federal government is expected to announce on Tuesday (30) a gradual reduction in fuel subsidies, according to reports. Economic ValueThe measure will be motivated by the fall in oil prices on the international market, with the price of Brent crude trading near US$70 a barrel, reducing the fiscal space that supported the incentive package adopted in recent months. A press conference is scheduled for 3 pm and will include the participation of the Ministers of Finance, Dario Durigan, and Planning and Budget, Bruno Moretti, as well as the Director-General of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Artur Watt Neto. According to the Economic ValueThe extraordinary revenue generated by the appreciation of oil was one of the factors that enabled the subsidies granted to contain fuel prices in the domestic market. With the normalization of international prices, the government should begin the gradual withdrawal of these measures. On May 25, the government published a decree and an ordinance that instituted a subsidy of R$ 0.44 per liter for gasoline producers and importers, valid for two months. Four days later, on May 29, part of the measures was renewed for another two months. The package maintained the diesel subsidy, the exemption of federal taxes on aviation kerosene and biodiesel, in addition to the subsidy of R$ 11 per 13-kilogram cylinder of liquefied petroleum gas (LPG). In the case of diesel, the government replaced the previous support mechanisms with new federal subsidies of R$ 1.12 per liter and R$ 0.35 per liter, which came into effect after the previous measures expired, scheduled for May 31.

This text was translated by machine from Brazilian Portuguese.