The increase in ICMS, on February 1st, has the potential to increase fuel prices by 12.5%
Rio de Janeiro – The average prices of diesel and gasoline are expected to increase in the coming days, driven by the increase in the ICMS state tax rate, after registering a decline in January, according to a survey by ValeCard, a company specializing in mobility solutions, this Friday.
In the last week of the month, between January 26th and February 1st, values remained almost stable, the survey showed, based on transactions carried out in more than 25 thousand accredited establishments in all states in Brazil.
“Although prices have remained relatively stable in recent weeks, the situation is about to change. The announcement of a significant increase in fuel and cooking gas, driven by the increase in the ICMS (state tax) rate, should directly impact the consumer’s pocket in the coming days”, said Brendon Rodrigues, Head of innovation and portfolio at ValeCard.
The increase in ICMS, on February 1st, has the potential to increase gasoline, diesel and cooking gas by around 12.5%, said ValeCard.
ValeCard said that the increase reflects the decision of several States to readjust the ICMS for products in general to compensate for revenue losses, citing the National Council for Financial Policy (Confaz).
The average price of S-10 diesel, the most consumed in Brazil at gas stations, recorded a decline of 1.26% in January, to 6.181 reais per liter.
Gasoline fell 0.46% in January, to 5.796 reais per liter, while hydrated ethanol, its direct competitor at the pumps, fell 1.91%, to 3.594 reais per liter.
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Tags: Diesel gasoline prices expected rise falling January