Majority of governors decide to thaw ICMS on fuels

The measure was adopted in October last year, in response to President Jair Bolsonaro’s criticism of state managers.

Gilson Junio/W9/Estadão Content – 10/28/2021MG – BELO HORIZONTE/ALTA/FUEL – GENERAL – Movement at a gas station in Belo Horizonte (MG) this Thursday, October 28, 2021. Gasoline was more competitive than ethanol in all states and the Federal District in the week of October 17 to 23, according to a survey by the National Agency for Petroleum, Natural Gas and Biofuels (ANP). In Minas Gerais, despite registering an increase, the average price of gasoline is R$ 6,603, against R$ 6,587 the previous week. Ethanol, on the other hand, is found at R$ 4.946 a liter, on average. 10/28/2021 – Photo: GILSON JUNIO/W9 PRESS/ESTADÃO CONTEÚDO

Most governors decided to unfreeze the ICMS of fuels. The measure was adopted in October last year, in response to criticism from the president. Jair Bolsonaro to state managers, and will be in effect until January 31. The decision was confirmed to Young pan by advisors to the governor of Piauí, Wellington Dias (PT), coordinator of the National Forum of Governors. “We did our part: freezing the reference price for ICMS, they did not value this concrete gesture, they did not respect the people. The answer was increase, increase and more increase in fuel prices”, he says, in a note. The PT also criticizes the “closed government to dialogue”. The governors defend the capitalization of the fuel equalization fund as an alternative to contain the escalation of prices, but the negotiations did not advance.

On Wednesday the 12th, Young Pan showed that the governors were studying to review the ICMS freeze. The decision was not a consensus and divided state managers. Since Wednesday, a liter of gasoline will be sold to distributors at R$3.24, up 4.8% from the R$3.09 charged so far. Already diesel will be R$ 3.61 per liter, an increase of 8% against the current price of R$ 3.34. “It is increasingly clear that what drives up the price of fuel in Brazil are the increases of Petrobras. We have always maintained that the value of fuel has to do with the dollarization of oil and the link made in Brazil”, stated Dias.

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