Gasoline, diesel and cooking gas will become more expensive this Thursday

The prices of gasoline, diesel oil and LPG (Liquefied Petroleum Gas), better known as cooking gas, will become more expensive from this Thursday (Feb 1, 2024). The reason is the increase in ICMS (Tax on Circulation of Goods and Services) rates charged by States.

The adjustments were approved in October by the Confaz (National Council for Financial Policy). The biggest increase is that of cooking gas, which had a tax increase of R$0.16 per kilo. Per cylinder, which weighs 13 kg, the cost should rise by R$2.03, an increase of 2%.

Here is the ICMS adjustment for fuel:

• Gasoline – tax increases from R$ 1.22 to R$ 1.37 per liter, an increase of R$ 0.15;
• diesel – tax increases from R$0.94 to R$1.06 per liter, an increase of R$0.12;
• LPG – tax goes from R$ 1.25 to R$ 1.41 per kilo, an increase of R$ 0.16 per kilo and R$ 2.03 per 13 kg cylinder.

Considering the average price of gasoline of R$5.56, according to the latest survey by ANP (National Petroleum, Natural Gas and Biofuels Agency), the value per liter increases to R$ 5.71 with the adjustment.

In the case of diesel oil, which already saw an increase in early January with the resumption of billing of federal taxes, the average value jumps from R$5.83 to R$5.95.

This is the 1st adjustment to the ICMS on fuels since 2022, when a ceiling of 18% was set on the collection of tax on essential products. Since then, the rates have been in reais per liter, and no longer as a percentage of the estimated price.

Entities criticize the intensity of the increase. As reported O Power360 in November 2023, the Sindigás (National Union of Liquefied Petroleum Gas Distribution Companies) stated that the adjustment could cause the LPG rate to exceed 18% in some States.