Bolsonaro issues decree to force stations to display fuel prices before ICMS ceiling

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The government of President Jair Bolsonaro (PL) will oblige gas stations to clearly and ostensibly display the fuel prices practiced in establishments before the law that imposed a 17% ceiling on ICMS (Tax on the Circulation of Goods and Services).

According to Palácio do Planalto, the purpose of the measure is to allow consumers to compare them with the amounts charged at the time of purchase. The measure was made by means of a decree, which will be published in the Official Gazette on Thursday (17).

The determination takes place less than three months before the election, and the increase in fuel prices and inflation are seen as the main obstacles to the reelection campaign.

Bolsonaro is in second place in the voting intention polls. According to the latest Datafolha, Lula has a 19-point advantage, with 47% of voting intentions against 28% for the president.

The date chosen by the government for prices to be displayed at gas stations is June 22 – the day before the president sanctions the law that sets a ceiling for ICMS tax rates on fuels.

“Automotive fuel service stations must inform consumers correctly, clearly, accurately, clearly and legibly”, says the General Secretariat of the Presidency in a statement about the initiative.

The Planalto stressed that a 2021 decree already determines the disclosure of information to consumers regarding fuel prices.

“With the decree now edited, complementary to Decree No. 10,634, of 2021, the consumer will be able to compare the prices charged at the gas station with the prices before the reduction of taxes”, he says.

“The ultimate goal is to offer the common citizen an instrument of transparency that allows him to identify, in an easy, quick and practical way, the stations that are selling fuel at lower prices and, therefore, decide where to fill up his vehicle.”

Also according to the text, the ANP (National Agency for Petroleum, Natural Gas and Biofuels) and the consumer protection agencies will guide the stations on the measure and guarantee the consumer the transparency of fuel prices.

In the Planalto note, it is not clear whether there will be any punishment in case of non-compliance.

For members of the government, the measure will not be effective in combating the increase in fuel prices. It is more of a symbolic initiative, they assess.

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