The Impact of ICMS Tabulation on Fuel Prices; Look

Understand the impact of ICMS pricing on fuel prices

Photo: Roque de Sá/Senate Agency

Yesterday, the Chamber approved a change in the ICMS calculation rule. As The Antagonist showed earlier, Arthur Lira celebrated the measure and promises a reduction of up to 8% in the price of fuel at the pumps. Experts, however, assess that the appreciation of the dollar and oil will keep diesel gasoline values ​​high.

Today, the tax charged by the states is based on the average price of gasoline, diesel and ethanol in the previous 15 days.

By the project approved by the Chamber, the states will be required to consider the average price of fuels in 2020 and 2021 when charging ICMS throughout 2022.

Lira embarked on Jair Bolsonaro’s narrative, who claims that fuel prices are high because states are free to set the ICMS rate.

Both Bolsonaro and Lira blame Petrobras and the states for the increase in fuel prices. But the two omit that the political and economic barbers of the government and Congress have affected the price of the dollar.

As oil is a commodity, exchange rate variations affect fuel prices. Thus, with each nonsense said by Bolsonaro or Paulo Guedes, the real loses value against the dollar and increases the value of gasoline and diesel.