In brief
The government extended gasoline and ethanol tax relief to December 9.
The estimated cost is R$ 2.76 billion.
What we know
04Verified fact
According to the Finance Ministry, the hydrated ethanol subsidy will cost R$ 813.41 million in the period.
Subsidy.
Sources[01]
Transmission to assets
Market read-through
The extension delays passing taxes on to gasoline prices.
Portfolio impact
01PETR4uncertain
Pump price held.
Relief ends.
What would change the view: Extension.
Direction is an explanatory hypothesis, not a forecast or recommendation.
Next signals
What to watch
- Further extension
- Oil prices
Limits of the reporting
What remains uncertain
- There is no decision on what happens after December 9.
Full sources
0301
Ministério da FazendaGoverno Federal prorroga até 9 de dezembro a desoneração da gasolina e do etanolofficial source
02Agência BrasilGoverno prorroga até 9 de dezembro desoneração da gasolina e do etanolindependent newsroom
03Gazeta do PovoGoverno prorroga desoneração de gasolina e etanol até 9 de dezembroindependent newsroom