With an agreement between the US and Iran, the government will suspend fuel subsidies, says minister

The Minister of the Secretariat of Institutional Relations, José Guimarães, stated this Tuesday (16) that the government intends to suspend fuel subsidies if the peace agreement between the United States and Iran, scheduled to be signed on Friday (19), is confirmed, according to announcements made by leaders of both countries.
In an interview with GloboNews, Guimarães stated that the reduction of tensions in the Middle East should ease the pressure on international oil prices, making it unnecessary to maintain the measures adopted by the government to contain the impact of fuels on the consumer.
Currently, the government grants different forms of subsidies to the sector:
Gasoline: the subsidy is R$0.44 per liter, a value that corresponds to approximately half of the federal taxes levied on the fuel (PIS/Cofins and Cide, which add up to R$0.89 per liter).
Diesel: the benefit is R$1.12 per liter. The measure was adopted after the end of the total exemption from federal taxes on fuel.
Imported diesel: the Union and the states maintain a compensation mechanism to encourage imports and guarantee the supply of the national market.
Government sets a subsidy of R$0.44 per liter of gasoline
According to the minister, the possible fall in international prices would also eliminate the need for approval of Complementary Law Project (PLP) 114, currently being processed in the Chamber of Deputies. Deputies, which foresees measures to reduce the tax burden on fuels from 2026.
"If the peace agreement is signed - and that is our expectation for Friday -, we will remove PLP 114 from the Chamber of Deputies. This will be a huge relief," said Guimarães.
READ ALSO: Oil prices fall after announcement of peace agreement between Iran and the US and reopening of the Strait of Hormuz
A The prospect of understanding between the United States and Iran has reduced market fears about possible disruptions to global oil supplies. As a result, the price of the commodity registered a sharp drop this Tuesday.
The barrel of Brent oil, an international reference, fell by around 5% and began to be traded in the range between US$ 81 and US$ 83, the lowest level in three months.
The financial market reacted to the announcement made by the president of the United States, Donald Trump, and by international mediators involved in the negotiations, reinforcing the expectation of normalization of the global energy supply.
The recent escalation in geopolitical tensions and their Effects on the international oil market are already impacting fuel prices in Brazil. A survey by the Economics Center of Sincomercio Araraquara points out that, although the country does not face the risk of shortages, the global rise in oil prices and internal factors continue to put pressure on gasoline, ethanol and diesel, with direct impacts on the cost of living. The Sincomercio Araraquara Economics Center continues to monitor data released by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) in order to evaluate the behavior of fuel prices in the municipality and in Brazil. In February, fuel prices in Araraquara recorded typical variations, mainly influenced by national and seasonal issues, such as tax changes and the lower supply of sugar cane. During the period, ethanol and gasoline prices increased; the price of cooking gas has already fallen, while oil
The recent escalation in geopolitical tensions and its effects on the international oil market are already impacting fuel prices in Brazil. A survey by the Economics Center of Sincomercio Araraquara points out that, although the country does not face the risk of shortages, the global rise in oil prices and internal factors continue to put pressure on gasoline, ethanol and diesel, with direct impacts on the cost of living. The Sincomercio Araraquara Economics Center continues to monitor data released by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) in order to evaluate the behavior of fuel prices in the municipality and in Brazil. In February, fuel prices in Araraquara recorded typical variations, mainly influenced by national and seasonal issues, such as tax changes and the lower supply of sugar cane. During the period, ethanol and gasoline prices increased; the price of cooking gas registered a drop, while oil

Source: G1