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As of January 2026, the ICMS on gasoline, diesel, and cooking gas will be adjusted. Know how this will impact prices and the daily lives of Brazilians.
As of January 2026, Brazilians will face a significant increase in the prices of gasoline, diesel, and cooking gas due to a rise in the ICMS (Tax on Circulation of Goods and Services), a state tax.
The adjustment, announced by the National Council of Farm Policy (Confaz), will directly affect the final price of these essential products for citizens’ daily lives, impacting consumers’ wallets and the cost of living in the country.
What Changes With the ICMS Increase?
As of January 2026, the ICMS on gasoline, diesel, and cooking gas will undergo the following adjustments:
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- Gasoline: increase of R$ 0.10 per liter, rising to R$ 1.57 per liter.
- Diesel: increase of R$ 0.05 per liter, going to R$ 1.17 per liter.
- Cooking Gas: increase of R$ 1.05 per cylinder.
These changes are based on the adjustment of the average monthly prices of fuels between February and August 2025, according to data from the National Agency of Oil, Natural Gas, and Biofuels (ANP), compared to the same period in 2024.
The Impact on Fuel Prices
The ICMS adjustment represents the second consecutive increase in the tax on fuels.
In February 2025, a similar increase had already been implemented, showing that the state government continues to adjust taxation to address fiscal needs and maintain budgetary balance.
Although the specific increase of R$ 0.10 for gasoline and R$ 0.05 for diesel may seem moderate, the rise in tax will have a cascading effect.
The higher cost of these fuels tends to be passed on to consumers, directly affecting urban mobility and the transport of goods.
In addition, the increase in cooking gas of R$ 1.05 per cylinder may also impact household economies, especially for low-income families.
Why Was the ICMS Adjusted?
The main reason for the ICMS adjustment lies in the fiscal balance of the states.
The tax increase aims to strengthen the revenue of state governments, especially in a scenario of pressure on public finances.
The ICMS on fuels and gas is one of the largest sources of revenue for states, which justifies the continuous increase in the tax.
For governors, the measure is a way to address the decline in revenues from other sectors and to ensure investments in essential areas such as health and education.
However, this increase also raises concerns about the impact on the most vulnerable classes, as the prices of fuels and cooking gas can directly affect the daily lives of Brazilian families.
Indirect Effects of the ICMS Increase
Fuels are considered “key prices” for the economy, meaning that increases in the price of gasoline, diesel, or cooking gas tend to spread to other sectors.
Transportation costs for goods, for example, may increase, reflecting in the final price of essential products such as food and consumer goods.
This cascading effect may worsen inflation, further impacting the purchasing power of Brazilians, who are already facing economic challenges.
The tax hikes on fuels and cooking gas may also trigger an increase in the cost of living.
What to Expect After Implementation?
The increase in the ICMS on gasoline, diesel, and cooking gas will take place in January 2026, with immediate effects on the fuel market.
The expectation is that the adjustment will directly affect gas station prices and the price of gas cylinders, which will, in turn, impact the economy of the entire consumption chain.
For families, especially the most vulnerable ones, the adjustment may represent an additional hardship in an economic environment already marked by inflation and rising costs of living.
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