Beginning February 1, 2025, fuel prices across Brazil will rise as new adjustments to the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) comeinto effect, creating additional burdens for consumers and businesses alike. The increase marks another chapter of rising living costs amid economic struggles faced by the nation.
The adjustments mean gasoline prices will see a hike of R$ 0.10 per liter, eleveting the tax from R$ 1.37 to R$ 1.47. The diesel and biodiesel tax will rise from R$ 1.06 to R$ 1.12 per liter. These updates were approved last November by the Conselho Nacional de Política Fazendária (Confaz) and received backing from governors across the country.
Many individuals are dreading the new costs associated with the fuel price increases. “Chegou na hora ruim. O Brasil tem passado por várias dificuldades,” commented Gustavo Xavier, owner of a local gas station, citing the precarious economic situation already faced by many Brazilians. He added, “Infelizmente, ele descumpriu essa promessa e isso prejudica tanto os empresários quanto os consumidores,” referring to Gov. Romeu Zema breaking his promise not to raise taxes.
The rising ICMS effectively muds the burden of taxation onto consumers, who feel the pressure as fuel costs leave their wallets lighter. “A gasolina está chegando a R$ 2,35 apenas em impostos por litro. Isso impacta diretamente o empresário,” Xavier explained. Fuel prices already represent significant taxation, leading consumers, already financially strained, back to square one.
Among those feeling the pinch is Cléo Santos, who expressed her frustration as she faces the double whammy of fixed income and rising prices. “Para quem é aposentado como eu, é um absurdo. A gente não tem aumento nenhum e os preços só sobem. Mas fazer o quê, né? É Brasil, e é um desgoverno,” Santos lamented, pointing out the reality of continued inflation without any adjust to her fixed income.
The escalation of prices doesn’t halt at the gas pumps. Santos fears increasing prices for everything else as freight and transport charges go up. “Claro que vai aumentar ainda mais. Eles repassam tudo, não perdem nada. Só sobra para a gente, que é o consumidor final,” she added, shedding light on the cascading effects of fuel tax increases on daily expenses and food costs.
Delivery worker Jeandson Fonseca also voiced concern about the broader impact of the ICMS increase, noting how it trickles down through the supply chain. “Isso vai afetar em várias coisas, porque eu preciso trabalhar todos os dias,” he stated, recognizing the direct correlation between transport costs and the price consumers will pay for goods and services. “No meu caso, que faço entregas de gás, o aumento acaba impactando também o preço final do produto. Isso generaliza tudo,” he explained.
With gasoline prices previously at R$ 6.29 on average before the increase, the new tax is projected to push prices higher. Following the adjustments, prices might reach R$ 6.39 on average across Santa Catarina, and some regions, like São José and Florianópolis, are expected to see prices soar even higher, potentially hitting R$ 6.57 and R$ 6.56 per liter respectively.
The fluctuations will also affect the diesel market, which experienced average prices around R$ 6.07 prior to the adjustment. This means the price could rise to at least R$ 6.13, creating more anxiety for both business owners and consumers.
Such tax adjustments were agreed upon following prolonged discussions among state finance secretaries, encapsulated by their decisions to enforce tax compliance and overcome issues of revenue shortfalls. Even with the governor's assurance earlier of not raising taxes, this shift stands as testimony to the fiscal challenges faced by the government.
The economic strain merges personal experiences as countless families and businesses wrestle with rising costs amid diminishing returns. With the tough economic climate persisting, industry leaders assert the need for greater deliberation on tax policies going forward, as the mounting burden on workers and pensioners becomes unsustainable.
While the government is grappling with avenues to shore up tax revenue, the repercussions of such decisions are trickling down to everyone. For now, residents will have to brace themselves as the economic challenges continue to mount, marked by rising fuel prices and their cascading effects on everyday life.