Government will remove gasoline subsidy next week, says Durigan
The Minister of Finance, Dario Durigan, stated this Tuesday (1st) that the government will withdraw next week the subsidy of R$0.44 per liter granted to contain the price of gasoline.
According to the minister, despite the uncertainties caused by the war between the United States, Israel and Iran, the international price of oil returned to levels close to those recorded before the conflict escalated, reducing the need to maintain emergency measures.
"The Brazilian government, when it saw that oil prices had risen a lot, with a risk of shortages, acted quickly: we put in subsidies. In the same way that I was ready to put the measures in place for consumers, I am also ready to withdraw them", said Durigan in an interview with Record News.
On Monday (30), the economic team announced the beginning of the gradual withdrawal of subsidies created to contain the rise in fuel prices caused by the war in the Middle East.
The first measure was the end of the subsidy of R$0.35 per liter of diesel, which ceased to be valid this Tuesday.
Durigan explained that the economic team monitors the evolution of oil and fuel prices in the domestic market on a daily basis to define when other incentives may be terminated.
The withdrawal of subsidies comes after the reduction of tensions in the Middle East, with the partial ceasefire agreement between the United States and Iran. As a result, a barrel of Brent oil was once again traded at around US$70, a level similar to that observed before the conflict.
According to the minister, two subsidies still remain in force: that for gasoline, which will be removed next week, and another for diesel, at R$1.12 per liter.
"The war still brings some uncertainty, but as we are seeing the numbers falling, the price of oil is also falling," he said.
In addition to the drop in the international price of oil, the government argues that the gradual removal of subsidies also seeks to preserve public accounts.
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Source: CNN