Brazil's government to cut taxes on gasoline to mitigate impact of higher oil prices

Brazil’s government said it will formally announce on Thursday a reduction in federal gasoline taxes, with details to be provided at a 5 p.m. local-time press conference. The measure is likely to modestly affect fuel prices and fiscal revenue, but the article provides no size or duration of the cut. Market impact should be limited unless the announcement is materially larger than expected.

Analysis

Brazil’s government said it will formally announce on Thursday a reduction in federal gasoline taxes, with details to be provided at a 5 p.m. local-time press conference. The measure is likely to modestly affect fuel prices and fiscal revenue, but the article provides no size or duration of the cut. Market impact should be limited unless the announcement is materially larger than expected.