Minister: War may extend need for diesel subsidy

The Minister of Development, Industry, Commerce and Services, Márcio Elias Rosa, highlighted this Monday (25) that the scenario of instability generated by the conflict between the United States, Israel and Iran should still have negative impacts in the future.

When commenting on the package adopted at the federal level to contain the rise in diesel prices in Brazil, Márcio Elias said that the federal government is willing to extend the diesel subsidy.

"The two measures that were taken reduced the risk of a price explosion, which would greatly impact the private sector. Unfortunately, the war is not over. It is possible that we will have to reissue these measures over the period", he said during a seminar at Firjan (Federation of Industries of the State of Rio de Janeiro), in Rio de Janeiro.

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"The government is willing to not waste time. This was already evident in the crisis with the tariffs in the United States", he added.

With the rise in oil prices after the start of the war in the Middle East, the federal government adopted measures combining tax relief and temporary subsidies.

Among the measures, PIS/Cofins on diesel oil was reset to zero and a subsidy was created for imported diesel, designed in cooperation with the States: the benefit was presented as R$ 1.20 per liter, with equal division of costs between the Union (R$ 0.60) and state governments (R$ 0.60). In parallel, there was a subsidy for diesel produced in Brazil.

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When asked by journalists whether the extension of the measures would change the subsidy values, the minister emphasized that no measure can be ruled out.

"There is no measure that you can discard, saying that the government cannot do it. There is no lack of courage for the government to take the decision. Today, the way it is decided, the damage is contained."

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Source: CNN