Fuel ICMS increase starts in February and sparks political fight
States approved an adjustment that weighs most on diesel; in São Paulo, the rise will be R$ 0.07 to R$ 0.13 per liter, and Boulos and Tarcísio traded criticism.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
The governors who make up Confaz approved, on October 29, an increase in the ICMS state tax on fuels nationwide, g1 reported. The new rates take effect on February 1, 2027, and diesel will get the largest adjustment, 11.1%. Gasoline and cooking gas rise 4.5% and 4.8%, respectively.
In the state of São Paulo, the country's largest in share of GDP, the government of Tarcísio de Freitas (Republicanos) calculates an increase of R$ 0.07 to R$ 0.13 per liter. The tax on diesel will go from R$ 1.17 to R$ 1.30 per liter, and on gasoline and ethanol, from R$ 1.57 to R$ 1.64.
The adjustment provoked a public clash between the governor and Minister Guilherme Boulos (PSOL), of the Presidency's General Secretariat. In a social media video, Boulos said the higher tax would raise freight costs and, consequently, food prices in supermarkets.
The minister accused Tarcísio of breaking campaign promises. g1 also reports that other states, such as Maranhão, have already made official the ICMS increase on fuels and cooking gas.