With Cooking Gas Prices Rising, Government Seeks to Use Precatory Resources to Fund Gas Voucher; The Same Will Happen with Brazil Aid

Gas Voucher, Which Will Cover Cooking Gas, Will Be Funded by Court-Ordered Payments

The Federal Government is counting on the approval of the PEC that changes the payment of court-ordered payments (federal spending arising from court decisions) to free up more resources to fund social benefits, such as Auxílio Brasil, the replacement for Bolsa Família, and the gas voucher, created to alleviate the price of cooking gas.

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In addition to the new Auxílio Brasil, the PEC on court-ordered payments is also seen as essential to fund the gas voucher, which is expected to be paid bi-monthly, with a maximum value of R$ 100. The benefit is considered crucial to help cover the purchase of a 13 kg gas cylinder, also known as cooking gas.

According to information from O Globo, there is still a long way to go to define the scope of the gas voucher program. The idea is that if a family benefits from Auxílio Brasil and the gas voucher, they could receive R$ 500 at certain times of the year. The new program is expected to have a total annual cost of R$ 4 billion to public coffers.

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Food and Basic Product Inflation Increases the Importance of Social Benefits

The increase in the price of cooking gas “has been affecting” the most vulnerable segments of the Brazilian population. With the arrival of the new benefit, it is expected that there will be a reduction in the impact of the product on the pockets of the neediest Brazilians. Today, with the depreciation of the real and the inflation of food and basic products, social benefits will become even more important, especially in the upcoming year.

Several explanations exist for the rise in cooking gas prices nationwide. The two main explanations are: the increase in the price of oil barrels in the international market, as well as the rise in the dollar price. Proof of this is that cooking gas is already being traded in some regions of the country for R$ 100 or more.

R$ 400 Benefit for Truck Drivers

In addition to the gas voucher and the new Auxílio Brasil, the R$ 400 assistance benefiting over 700,000 truck drivers may also be included in the PEC on court-ordered payments. The benefit for truck drivers was a federal government action to alleviate the dissatisfaction of the category with the rise in diesel prices, thus avoiding a national strike, which would be detrimental to the economy.