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Brazil's Petrobras raises gasoline and diesel prices by 19% and 25%

The Brazilian national oil and gas company Petrobras has raised gasoline prices for distributors at the refinery gate by 18.8% to BRL3.86/l (US$76c/l) and diesel prices by 24.9% to BRL4.51/l (US$89c/l) due to rising oil prices. These price increases should translate into higher end-consumer prices.

Meanwhile, the Senate has approved a bill changing the way fuel prices are calculated (elimination of the Social Integration Programme (PIS) and of the Contribution to Social Security Financing (Cofins) taxes on diesel, kerosene and cooking gas and change in the way the Tax on the Circulation of Goods and Services (ICMS) is charged on gasoline, diesel, ethanol, biodiesel, cooking gas and aviation kerosene). The law also creates a Stabilisation Account to compensate for extreme increases in fuel prices. The Senate has also adopted a bill creating a subsidy scheme for actors in the fuel distribution market when international prices rise above an acceptable range for domestic fuel prices; it also creates a motor fuel assistance programme for low-income families. The two bills will now be send for approval to Brazil's lower house.