Brazil To Unveil Fuel Subsidy To Curb Rising Prices

BRASILIA, May 15 (Bernama-Xinhua) -- The Brazilian government said Wednesday it will soon introduce a fuel subsidy to help curb rising prices linked to the West Asia conflict, with the measure initially applying to petrol and potentially expanding to diesel at a later stage, reported Xinhua.

According to the government, petrol has not yet been covered by subsidies or tax cuts introduced since the outbreak of the conflict. The measure could later be extended to diesel after an existing subsidy programme expires.

The subsidy will be paid directly to producers and importers through the National Agency for Petroleum, Natural Gas and Biofuels, and will be capped at the level of federal fuel taxes, the government said.

Brazilian Mines and Energy Minister Alexandre Silveira urged distributors and petrol stations to ensure that consumers quickly benefit from the measures. "I call on distributors and gas stations to speed up the implementation of federal measures," he said.

Planning and Budget Minister Bruno Moretti said the subsidies will be funded through the federal budget while remaining fiscally neutral and without adding pressure to public finances. 

--BERNAMA-XINHUA