Billions From Oil and Gas Support Public Machine and Ease States' Finances

Billions From Oil and Gas Support Public Machine and Ease States’ Finances

Written by Caio Aviz

Published on 20/08/2025 at 15:21

Notas de reais, moedas e bomba de petróleo representam a contribuição de R$ 325 bilhões da indústria de óleo e gás ao financiamento de educação, saúde e previdência em 2023.

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An unprecedented analysis conducted in 2023 by the Brazilian Institute of Oil and Gas (IBP) revealed the extent of the impact of the oil and gas (O&G) industry on public financing in Brazil. With over R$ 325 billion collected in annual taxes, the sector provides essential resources for the Union, states, and municipalities, establishing itself as one of the pillars of the national economy.

Study Points to Direct Impact on the Union

The study titled Importance of the O&G Sector for Public Accounts demonstrated that, only in 2023, the federal revenue attributed to the sector totaled R$ 155.8 billion. This amount would be enough to cover:

102% of the Education budget in 2023
84% of resources allocated to Health in 2023
58% of Social Assistance in 2023
16% of Social Security in 2023
58% of the Labor budget in 2023

According to Roberto Ardenghy, president of the IBP, these figures prove that the oil and gas industry goes beyond providing energy. It ensures pensions, schools, universities, and medical care in the SUS. However, he emphasizes that to guarantee this massive contribution to the country, it is essential to maintain regulatory predictability and policies that encourage investments.

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States Depend on the Sector to Maintain Revenue

The study also showed that the relevance of the sector extends to states. On average, in 2023, the revenue generated by the industry accounted for 13% of state budgets, due to transfers of Royalties, Special Participation (PE), and the ICMS collection on fuels, which reached R$ 116 billion in 2023.

Rio de Janeiro is the most emblematic case. The state collected R$ 30.4 billion in 2023, equivalent to 34% of all state revenue. Additionally, the analysis highlighted that non-producing states also heavily depend on the sector. In Goiás, the ICMS on fuels accounted for 24% of revenue in 2023, while in Mato Grosso do Sul this percentage was 26%.

Unprecedented Consolidation of Revenue Sources

The IBP’s research has uniquely consolidated all revenue sources related to the oil and gas industry. Among them, the following stand out:

ICMS on fuels
Royalties and Special Participation (PE)
Signature Bonus in exploratory block auctions
Oil Profit of the Union in sharing contracts
Federal taxes (PIS/Cofins, CSLL, and IRPJ)

This survey demonstrates that the oil and gas industry remains strategic, not only from an energy perspective but also as one of the main contributors to financing essential public policies in 2023.

Sector as a Strategic Asset for Brazil

In addition to generating wealth and jobs, the oil and gas sector consolidates itself as one of the central gears of social financing. The study points out that the continuity and strengthening of the industry are essential to maintain national development and ensure well-being for the population.

However, the IBP emphasizes that without regulatory stability and incentives for private investment, the sector’s capacity to continue ensuring this level of revenue may be compromised. Therefore, maintaining a business-friendly environment is seen as crucial to preserving the results achieved in 2023.

The Future of the Sector and Public Financing

The survey conducted by the IBP in 2023 makes it clear that the oil and gas industry is a strategic asset that underpins the foundations of the Brazilian state. While generating energy, it funds education, health, social security, and social assistance.

The challenge now is to ensure predictability and security for investors, ensuring that this source of resources continues to nourish the country. After all, the revenue that currently supports public budgets may be decisive for Brazil to face the economic and social challenges of the coming years.

What do you believe should be a priority for Brazil: maintaining the oil and gas sector as the main source of public revenue or accelerating the energy transition with new sustainable revenue models?

Billions From Oil and Gas Support Public Machine and Ease States’ Finances

Study Points to Direct Impact on the Union

States Depend on the Sector to Maintain Revenue

Unprecedented Consolidation of Revenue Sources

Sector as a Strategic Asset for Brazil

The Future of the Sector and Public Financing

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Billions From Oil and Gas Support Public Machine and Ease States’ Finances

The Oil and Gas Sector Finances Education, Health, Social Security, and Social Assistance With a Decisive Impact on Public Accounts in 2023

Study Points to Direct Impact on the Union

States Depend on the Sector to Maintain Revenue

Unprecedented Consolidation of Revenue Sources

Sector as a Strategic Asset for Brazil

The Future of the Sector and Public Financing

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