Fuel prices are expected to rise in January as the federal tax exemption expires. According to CBIE (Centro Brasileiro de Infraestrutura) calculations, the return of charging PIS and Cofins may represent an increase of BRL 0.69 per liter of gasoline, a 14% increase over the average price of BRL 4.93 found at Brazilian stations during the week of December 18th to 24th by the ANP (National Petroleum, Natural Gas and Biofuels Agency). The increase for ethanol can reach BRL 0.26 per liter, representing a nearly 7% growth over the average price of BRL 3.81. The return of PIS and Cofins on diesel would raise its price by BRL 0.33 per liter, representing a 5% increase over BRL 6.81 per liter.
Sources: Reuters/MoneyTimes (*Translated by Ia Niani)