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Published on 04/11/2016
Published on 11/19/2015
Lower Diesel Prices Likely to Reduce Transportation Resources by US$ 291 million
06/05/2018 - 10h41
FROM SÃO PAULO
Measures adopted by Michel Temer's (MDB Party) Government to reduce the price of diesel by R$ 0.46 (US$ 0.12) are expected to result in a loss of R$ 1.09 billion (US$ 291 million) in tax revenue destined for investment in the transportation sector.
A cut of R$ 368.9 million (US$ 98.4 million) in the Federal Budget would impact 40 ground transportation projects.
Additionally, the elimination of Cide taxation on fuel would remove R$ 722 million (US$ 192.5 million) destined for maintenance of state highways, according to estimates from the transportation secretaries of the 26 states and the Federal District.
|Petrobras, the state-owned oil company, last June introduced a policy of adjusting fuel prices to daily shifts in international oil markets.|
Together they make up the National Transportation Secretaries Council and as a group they are trying to negotiate with the Federal Government
According to Marcelo Duarte Monteiro, the Council President, most States rely exclusively on Cide collections to manage their highway networks. The States most affected are São Paulo, which would have been receiving R$ 237.6 million (US$ 63.4 million) this year and Minas Gerais (R$ 149 million [US$ 39.7 million).
Translated by LLOYD HARDER