Brazilian authorities responsible for fuel policy are discussing a proposal to increase the percentage of ethanol mixed in gasoline from 30% to 32%. Additionally, they are assessing the possibility of extending tax exemptions for biodiesel, similar to those currently applied to diesel fuel. This initiative is a response to the surge in oil prices triggered by the conflict between the United States and Israel against Iran, which has resulted in a global rise in commodity prices.

The discussions are taking place among members of the Ministry of Mines and Energy and the Ministry of Finance. If implemented, these measures would be part of the federal government's broader strategy to alleviate the rising fuel prices, which have become a pressing issue for Brazilian consumers and the economy as a whole. So far, the government has already announced other actions, including reducing tax rates on diesel and providing subsidies to encourage states to lower their ICMS taxes.

Despite the federal government's support for these initiatives, governors have shown little enthusiasm for participating in the proposed tax reductions, which adds a layer of complexity to the implementation of these measures. The growing public pressure and the need for a coordinated response to the rising fuel prices will be crucial in determining how the government will proceed with these discussions.