Gas cylinder will be up to R$ 7.50 more expensive with new ICMS from the 1st – 04/28/2023 – Market

The price of gas cylinders starts in May pressured by the introduction of the new ICMS collection model next Monday (1st). The tax on diesel will also change, but the effect will be offset by the reduction in prices at refineries announced this Friday (28).

The tax on both fuels will now be charged in reais per liter, at a single national rate, according to a law approved by Congress in 2022. In both cases, the new rate is higher than the amount currently charged.

In the case of cooking gas, the rate charged on the 13-kilogram cylinder will be R$16.34, R$2.11 higher than the current average, according to data from Sindigás, which represents companies responsible for 99% of national fuel distribution .

With full transfer, the average price of the cylinder in the country would rise to R$ 109.61, considering the value researched by the ANP (National Agency of Petroleum, Gas and Biofuels) last week and the tax increase.

The variation, however, is different between states. Those who had lower fuel tax will have greater impact. According to Sindigás, the ICMS rate rises more in Mato Grosso do Sul (R$ 7.49 per cylinder), Sergipe (R$ 5.88) and Amapá (R$ 4.98).

In São Paulo, consumers will pay an additional R$3.62 per bottle. In Rio de Janeiro, the high is R$ 4.91. In Acre, Rio Grande do Norte, Minas Gerais and Santa Catarina, the impact is negative, down by R$0.24, R$3.76 and R$4.39, respectively.

state	Increase in ICMS, in BRL per bottle
MS	7.49
IF	5.88
AP	4.98
RJ	4.91
BA	4.47
LOL	4.25
SP	3.62
GO	3.06
DF	3.05
IP	2.93
BAD	2.53
FOOT	2.45
MT	1.95
RO	1.44
TO	1.39
SHOVEL	1.09
AL	1.05
PB	0.98
RR	0.85
AM	0.48
PR	0.46
ES	0.00
EC	0.00
B.C	-2.03
RN	-2.08
MG	-3.76
SC	-4.39

The new rules for ICMS were defended by the fuel sector for facilitating the collection of the tax and curbing fraud with the purchase of products in states with a lower tax burden for sale in those where the price is higher.

The law also had the objective of reducing fuel taxes, but in the end the states ended up choosing rates closer to the highest practiced in the country.

The gas sector complains that there are still gaps in the process of migrating to the new model that could create “severe risks” to supply.

“The existence of necessary technical and regulatory requirements not yet defined by the various federative units brought a scenario of total insecurity for all links in the LPG supply chain [gás liquefeito de petróleo, o nome do gás de cozinha]”, it says.

Among these uncertainties, he says, are the calculation and allocation of ICMS to the states, issues related to stocks of products prior to the change in the taxation regime and discipline of credits in previous operations.

The new diesel tax rate is R$ 0.11 per liter higher than the current average, according to Dietmar Schupp, a consultant specializing in fuel taxation. But the impact on the final price will be offset by the cut of R$ 0.38 per liter promoted by Petrobras in its refineries.

The decision was announced this Friday, on the eve of the beginning of the collection of the new tax. It was already expected by the market, since the company had been practicing prices above international quotations since the beginning of the month.

For gasoline, the change takes place only on June 1st, also with an expectation of an upward impact on prices, since the new rate, of R$ 1.22 per liter, is higher than that charged in almost all Brazilian states.