A court in Petrópolis, part of the Serrana Region of Rio de Janeiro, has ordered an immediate suspension of a 7.48% hike in water and sewage tariffs as outlined in decree no. 345/2025 issued by Mayor Hingo Hammes earlier this year. This judicial decision, stemming from a civil suit, also blocks automatic yearly increases of 2.04% that were scheduled to continue until 2033, the end of the contract with the utility company, Águas do Imperador. The ruling mandates the company to refund all tariff amounts collected since the decree was enacted, pending a thorough examination of the case.

This suspension followed legal actions that questioned the legality of the tariff increase, particularly focusing on the assertion that a 7.48% rise was excessive when compared to Brazil's inflation, which stood at only 3.90% for 2025. One prominent figure in this legal battle is city councilman Leo França, who highlighted these inconsistencies and argued against the economic rationale behind the mayor's decree. The court's ruling indicates a strong judicial pushback against what it sees as fiscal irresponsibility in public management, emphasizing the need for data-driven and transparent governance.

Moreover, this court action reflects broader concerns regarding municipal financial policy in Brazil, especially in the context of rising living costs and public dissatisfaction with essential services. The decision is likely to provoke further discussion on the balance between necessary public funding and the economic burden on citizens, particularly in a climate where many residents may already be feeling the strain from economic pressures. This case could set a precedent for future considerations surrounding utility rate increases and the legal standards expected for such adjustments in Brazil.