Government announces withdrawal of part of the diesel subsidy from Wednesday; similar measure for gasoline should occur soon
The Minister of Finance, Dario Durigan, announced this Tuesday (30) that the diesel subsidy - implemented to reduce the impact of rising fuel prices as a result of conflicts in the Middle East - will end this Wednesday (1).
Government will withdraw part of the diesel subsidy from July
José Cruz/Agência Brasil via BBC
The subsidy is part of a package of measures adopted in April. Initially, the government provided a discount of R$1.20 per liter of fuel, relating to federal and state taxes.
On May 31, the government created a subsidy of 35 cents per liter to replace the federal tax relief that expired at the beginning of June. It is this subsidy that is being closed by the government as of July.
"We were attentive and ready to put the measures in place so as not to be a partner in the war and mitigate prices, we will also be attentive and be ready to withdraw and reverse the measures", said Durigan.
Now on g1
The minister said that the government is evaluating other measures still in force, such as another diesel subsidy, of R$ 1.12, and a subsidy of R$ 0.44 per liter for gasoline.
"In the next few days, very soon, we will make an announcement of a withdrawal, at least in principle, or at least gradual, partial, also of the gasoline subsidy, as soon as we follow up with the ANP [National Petroleum Agency], prices are more stabilized as we have noticed", he stated.
Source: G1