Brazil is planning to cut the tax on fuels next week to open the way for a 7% increase in prices for the government-run oil company, Petroleo Brasuileiro SA (PBR, PETR4.BR), the O Globo newspaper reported Friday.
The government would slash the CIDE tax to zero, the newspaper said. By cutting the CIDE tax, the government allows Petrobras to raise fuel prices without impacting inflation. Petrobras subsidizes fuel prices, without passing on rises in global oil prices for many months at a time, to avoid stoking inflation.
On the web: www.oglobo.com.br
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