The federal government and states announced on March 31 an agreement to subsidize imported diesel by R$ 1.20 per liter, split equally between the Union and states, to mitigate the impact of the Iran war on fuel prices. The measure is emergency and limited to up to two months, with voluntary adherence. More than 80% of states have signaled interest in participating.
The federal government and states reached an agreement on Tuesday, March 31, for a joint subsidy on imported diesel, according to a note from the Ministry of Finance and the Committee of State and Federal District Finance Secretaries (Comsefaz). The total amount is R$ 1.20 per liter, with R$ 0.60 covered by the Union and R$ 0.60 by the states, proportional to diesel consumption in each federation unit. The estimated cost for two months is R$ 3.2 billion, with R$ 1.6 billion for each party.
Adherence is voluntary and does not redistribute quotas from states that choose not to participate. At least 15 states confirmed participation to Folha de S.Paulo: Acre, Alagoas, Amazonas, Bahia, Ceará, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio Grande do Sul, Santa Catarina, São Paulo, and Sergipe. The Federal District was the only one to reject it, while Rio de Janeiro awaits the provisional measure. Other states had not positioned themselves by the time of reporting.
"The initiative reinforces the cooperative dialogue between the Union and states in seeking joint solutions for the fuel market," states the official note. Finance Minister Dario Durigan said adherence is close to unanimous, highlighting the "pragmatic recognition of the inclusive work." São Paulo's government praised the "more structured design" of the current proposal, unlike a previous idea to zero ICMS only on imported diesel.
The measure addresses rising oil prices due to the conflict between Iran and the United States, affecting global supply.
