Gasoline price grew 20%: Not even ICMS solves it!

Despite the drop in the price of gasoline with the reduction of ICMS, fuel has increased in recent months

Estimated reading time: 3 minutes

The fixing of the ICMS (Tax on Circulation of Goods and Products) ceiling between 17% and 18% on fuels, electricity, telecommunications and collective transport, determined by the Federal Government to the states, is already having an effect.

The price of fuel has dropped. According to data released by the IBGE (Brazilian Institute of Geography and Statistics), gasoline dropped by 5.01%.

However, even with the reduction of taxation, the surge in product prices in recent months will hardly be compensated. This is due to the strong rise of some items, in the period of 12 months, above the value of inflation.

Fuel, for example, even with a 5% drop, showed an increase of 20% in the last year. Cooking gas, an essential item for Brazilian families and which increasingly compromises the family budget of low-income people, increased by more than 23% in the same period.

It is important to point out that the effects of the ICMS legislation have not yet been fully felt, since it came into force in June, amid data collection for the calculation of the IPCA-15 (Broad Consumer Products Index).

Based on the information provided by the IPCA, check the variations of the items that had a reduction in taxation, in the 12-month period.

  • Diesel: +61.89%;
  • Gasoline: +20.38%;
  • Ethanol: +11.78%;
  • Vehicle gas: + 30.68%;
  • Bottled gas: + 23.79%;
  • Urban buses: + 3.62%;
  • Telephone plan: + 1.87%;
  • Electricity: – 4.86%.

Items that dropped in price in July

Some items, mostly from the food sector, showed a certain drop in the July inflation preview. Ethanol is among them. Look.

  • Orange: – 22.16%;
  • Tomato: – 19.42%;
  • Carrots: – 19.24%;
  • Onion: – 10.08%;
  • Ethanol: – 8.16%;
  • Broccoli: – 5.92%;
  • Cabbage: – 5.39%;
  • Gasoline: – 5.01%;
  • Grape: – 4.79%;
  • Electricity: – 4.61%.

Even with the reduction in July, the percentages accumulated in 12 months represent a significant increase in most items, such as gasoline.

Food, for example, even with this monthly drop, had a substantial appreciation.

ICMS reduction impacts other areas

ICMS is a state tax. Part of it is destined for other areas, such as education and health. In this sense, when fuel taxes are reduced, prices drop, but it is necessary to consider that transfers also cease to be carried out in the same proportion.

This is because a good part of the total collected by the federative units is used to complement funds for education and health, essential sectors for the population.

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Image: Isaac Fontana /

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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