English 
Spanish 
3 min read
0 comments
From February 2025, the increase in ICMS promises to significantly raise the price of gasoline and other fuels.
Brazilians can now prepare to feel the weight in their pockets with the decision by Confaz (National Council for Tax Policy) to increase ICMS rates, effective February 1, 2025. Gasoline and ethanol will be the most impacted, but diesel and biodiesel will also be affected. This change promises a real turnaround in the price of gasoline and, consequently, in the cost of living for consumers.
Increase in ICMS: what changes in the price of gasoline and fuel?
The impact will be direct: gasoline and ethanol will see a 7,14% increase in ICMS rates, rising from R$1,3721 to R$1,47 per liter. For those who were already suffering with prices since January 2024, when there was a R$0,25 increase in the tax, this new increase will be even more felt when refueling.
Diesel and biodiesel will also see a price increase, but at a lower level, of 5,31%, raising the rates from R$1,0635 to R$1,12 per liter. Cooking gas is the only exception, with a 1,69% reduction in the rate. Despite this, the drop in the price of this essential item will not be enough to offset the overall impact on transportation and product costs.
- Gasoline rises in the first half of January 2025: Analysis of the Edenred Ticket Log Price Index.
- Gasoline prices soar to second highest in 2 years under Lula's government, leaving drivers outraged and the economy on alert
- Fuel price gap: Pressure on Petrobras, rise in the dollar and impacts on the Brazilian economy.
- Fuel Price Acceleration in 2024: Highlight for Ethanol and Gasoline
How does the increase in ICMS affect the economy?
The increase in ICMS on the price of gasoline will have knock-on effects, starting with the transportation of goods and spreading to the price of products and services. With logistics becoming more expensive, the impact will reach supermarket shelves and, inevitably, families' pockets.
Inflation, already a constant concern, could gain even more strength with the increase in fuel prices, putting even more pressure on the cost of living. Basic services, such as health and education, are also taken into account, as the states defend the adjustment as essential to guarantee resources without compromising priority areas.
How to minimize the impact on your pocket?
The scenario is not encouraging, but there are some strategies to reduce the damage:
Plan your monthly budget taking into account the increase in the price of gasoline.
Consider alternatives such as more fuel-efficient vehicles, carpooling, or public transportation.
Keep an eye out for promotions and loyalty programs at gas stations.
The discussion continues
The debate over ICMS and the price of gasoline promises to intensify in the coming years. While states justify the need for the increase to balance public finances, popular pressure may force new negotiations. For consumers, the challenge is to adapt and find creative ways to overcome the impacts on their budget.
Whether it's in car fueling or in price increases on the market, the increase in ICMS will be a watershed in economy Brazilian – and the price of gasoline will continue to be one of the main indicators of this change.
