President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.
The bill ties federal tax cuts to surplus oil royalties and sales revenues, stemming from international price surges due to the US-Israel-Iran conflict. ANP's gasoline import parity price rose from R$2.45 to R$3.95 per liter between the week before the attacks and last week.
Petrobras has not yet adjusted refinery gasoline prices, but the market anticipates hikes post-tax cuts, akin to diesel, which rose R$0.38 per liter after PIS/Cofins exemption. The government zeroed those taxes on diesel and introduced a R$1.52 per liter subsidy for importers selling below ANP's price cap. Gasoline still carries about R$0.47 per liter in federal taxes.
Government representatives discussed the plan in a Thursday (23) interview without specifying cut amounts. Analysts forecast sustained high Brent crude prices above US$100 per barrel, even with potential diplomatic resolution.
The proposal requires congressional approval and joins broader measures like diesel and cooking gas subsidies, estimated at R$31 billion yearly cost. Each R$0.10 gasoline tax cut would impact R$800 million annually, per the Planning Ministry.
