Port Dispute: ES Government Proposes New Free Gas Market Law and Reduction of ICMS on Bunker Fuel to Increase Port Activity in the State

The Reduction of ICMS Will Make Navigation Fuel (Bunker) Have, in Espírito Santo, the Lowest Price in Brazil, Attracting More Ships to the State.

In order to strengthen economic growth and increase the competitiveness of Espírito Santo, the state government proposes the creation of the State Law for the Free Gas Market and the reduction of ICMS on bunker fuel; if approved, ES will have the lowest price in the country, attracting more ships to the region. Another good news for the state, 5500 jobs for Espírito Santo between the construction and operation phases of the largest thermoelectric plant in Latin America and the Petrocity port complex.

Last Wednesday (08/19), the governor of Espírito Santo, Renato Casagrande, announced at a virtual event the submission to the Legislative Assembly of two bills aimed at strengthening economic growth in Espírito Santo.

One of the bills concerns the creation of the State Law for the Free Gas Market; the other reduces the ICMS rate on navigation fuel from 17% to 12%. The goal is to strengthen economic growth and increase the state’s competitiveness.

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The president of the Federation of Industries of Espírito Santo (Findes), Cris Samorini, participated in the online ceremony and highlighted the importance of both bills. “Both bills strengthen the state’s energy market. The New State Law for the Free Gas Market and the ICMS Reduction for navigation fuel, known as Maritime Bunker, favor cabotage navigation and are also aligned with the federal BR do Mar project,” emphasized Cris Samorini.

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Governor Renato Casagrande highlighted the importance of this initiative. “These are important projects, as we seek to make Espírito Santo competitive nationally and internationally. We do not have a fully adequate infrastructure that leads us to competitive logistics. Therefore, we need investments in ports. The concession of Codesa is under discussion, and we are eager for the Imetame Port to begin along with other ports that are all important to us. The dredging of the Port of Vitória has been consolidated, increasing the capacity of the ships that enter, but we know it has its limitations. By resolving the issue of navigation fuel, we can pursue higher quality and establish ourselves in cabotage navigation,” stated Casagrande.

The State Secretary of Finance, Rogelio Pegoretti, reminded that cabotage navigation is a transportation modal with great growth potential in Brazil and Espírito Santo. “Today, fuel represents, on average, 35% of the cost of a cabotage trip. Reducing the rate is an opportunity to lower our products’ prices in other states and ensure that inputs arrive cheaper in Espírito Santo,” he commented.

“As a result, the productive and distributive chain in Espírito Santo benefits. Agriculture, industry, the wholesale sector, and logistics will also benefit. The reduction of the rate will make navigation fuel have, in Espírito Santo, the lowest price in Brazil,” added the Secretary of Finance.