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More expensive fuels: what changes from February
From February 1, 2025, the prices of gasoline, ethanol and diesel will rise significantly in the Federal District and in all Brazilian states. This decision, taken by the National Council for Finance Policy (Confaz), will have a direct impact on consumers' pockets. With the increase in ICMS rates, a state tax that is levied on fuel, both drivers and transport companies will need to adjust their budgets to these changes.
How much will ICMS increase in 2025?
The new value of ICMS for gasoline and ethanol will be R$1,47 per liter. For diesel and biodiesel, the rate will rise to BRL 1,12 per liter. Currently, these values are R$1,37 and R$1,06, respectively, which represents a considerable impact. According to Paulo Roberto Tavares, director of Sindicombustíveis-DF, the adjustment will already be felt as soon as the fuel leaves the refineries and, therefore, will quickly reach the end consumer.
ICMS on cooking gas will fall
Despite the increase for gasoline and diesel, the cooking gas (LPG) and the liquefied natural gas (LNG) will have a slight reduction in ICMS. Starting in February, the rate will fall from R$1,41 to R$1,39. Although the discount is small, it could alleviate some of the expenses of families who depend on gas for their daily lives.
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Why is the ICMS on fuels increasing?
This adjustment is the result of a law passed in 2022 that unified the ICMS on fuels in all states. Since then, the ICMS has been charged in reais per liter, and no longer as a percentage. This change brought predictability to the sector, but also opened up space for regular adjustments. Previously, each state applied a different percentage, updated periodically; now, the amount is fixed per liter, but subject to review.
How will this increase impact your budget?
With the increase in ICMS, the impact on consumers' budgets will be inevitable, and the cost of transporting goods is also expected to rise. See how the increase can affect your daily life:
- Tighter household budget: With more expensive gasoline, the cost of daily transportation increases, which impacts the daily lives of drivers and companies.
- Increase in product prices: As transportation affects the final price of many items, the cost of food and other essential goods also tends to rise.
- Light relief in cooking gas: Although the reduction in ICMS on LPG is small, it can represent a relief in the budget of many families.
Compensation for states
To reduce the effects of the 2022 change, the federal government signed an agreement with states and municipalities to offset losses in ICMS on fuels. With these tax exemptions, the Union seeks to cushion the impact of inflation on families' pockets, while balancing state finances.
What to expect from the fuel sector?
The fuel sector is adapting. With the unification of tax rates, the expectation is stability, but fiscal adjustments may occur again. Therefore, consumers and companies must prepare and monitor these changes, which affect transportation and the cost of living.
How to prepare for the raise?
To minimize the impact, here are some tips:
- Plan your car usage: Shorter routes and less vehicle use help save fuel.
- Opt for alternative transport: Public transport can be an economical option to reduce expenses.
- Compare prices at gas stations: Researching fueling options can help you find better prices.
This increase reflects fiscal challenges for states, but the slight reduction in LPG offers some relief. For more updates on the fuel market, stay tuned!
