Fuel prices meeting with Guedes, Pacheco ends without agreement

Economy Minister Paulo Guedes met with Senate President Rodrigo Pacheco this afternoon to discuss legislative proposals to control fuel prices, but the meeting ended without an agreement. Talks centered around two bills in Congress that aim to contain the price of gas at the pumps, which has risen 44 percent in 12 months. 

For the rapporteur of the two bills, Jean Paul Prates — also present at the meeting — the proposals should still go to a vote this afternoon “with no last minute surprises.” One of the bills changes how the ICMS state-level taxes on goods and services is calculated (making it a fixed rate rather than a floating one) while the other creates a price stabilization fund. 

In the understanding of Mr. Guedes’ economic team, it would be advisable to wait for the effects of these measures on the market and also to observe the progress of the war in Ukraine — which has contributed to massive increases in the price of oil — to then decide if it is the case to adopt new measures.  This Tuesday, Mr. Guedes reiterated that the government will not freeze fuel prices.

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