President Jair Bolsonaro met with House Speaker Arthur Lira and Economy Minister Paulo Guedes this morning to discuss rising fuel prices and other economic issues. The meeting was not on the president’s official schedule and was revealed by Mr. Lira, via his social media accounts.
Mr. Lira also commented on the lower house’s approval of a measure creating aid for low-income families, subsidizing the price of the ubiquitous botijão domestic cooking gas cylinders by a minimum of 50 percent.
The government is in discussions with the House Speaker to launch a bill putting the brakes on fuel price increases. Since January, gasoline has become progressively more expensive due to the increased value of oil, as well as foreign exchange rates reflected in state-owned oil firm Petrobras’s final price. However, the government has placed the blame on goods and services tax ICMS, set and charged by state administrations.
Mr. Lira has already discussed two alternatives to relieve the pressure on fuel prices: transforming ICMS into an ad rem tax of BRL 0.89 per liter at the pumps, or creating a fund to stabilize prices using resources from federal dividends or oil royalties.
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