Brazil’s fiscal council Confaz will raise diesel ICMS by 11.1% from February 2027, according to Valor Economico.
According to Valor Economico, Brazil’s fiscal council Confaz approved raising diesel ICMS from R$ 1.17 to R$ 1.30 per litre from February 1, 2027; the 11.1% increase applies to the tax, not the final price. In Mexico, finance secretary Amador Zamora ruled out P-Caps support for state oil company Pemex in 2027, according to El Economista, which reported losses for a third consecutive year. For creditors and suppliers, replacement financing remains unresolved. Valor Economico also reported that the dollar closed the week at R$ 5.44 in Brazil, up 9.04% from the last week before the electoral period, while fiscal adjustment remains under debate. A weaker real raises the local-currency cost of dollar-denominated obligations and equipment for energy projects.
Global context
- According to ISW, UKMTO reported that an unidentified projectile struck a vessel in the Strait of Hormuz on November 1; without damage or restriction details, this does not establish a closure.
- Oilprice reported a 3% crude decline, with Brent at $109.82 and WTI at $100.57 a barrel, attributed to expectations of a possible US-Iran agreement, not an announced pact.
- Unidad Editorial reported that strategic-reserve volumes began flowing to the market following the G7 commitment to release 100 million barrels of oil and diesel over four months, without quantifying actual deliveries.
Other developments
Brazil: Confaz to raise diesel ICMS 11.1%, according to Valor Economico
According to Valor Economico, Brazil's Conselho Nacional de Política Fazendária (Confaz), which brings together state and Federal District finance or taxation secretaries, unanimously approved raising diesel ICMS from R$ 1.17 to R$ 1.30 per litre, an 11.1% increase, from February 1, 2027. The decision also adjusts fixed rates on gasoline and cooking gas. Confaz linked the update to instability in international petroleum-product prices.
What to watch
Implementation of the new fuel ICMS rates on February 1, 2027.
Mexico: Treasury rules out more Pemex P-Caps, El Economista reports
According to El Economista, Amador Zamora, Mexico's finance secretary, ruled out using Pre-Capitalized Notes (P-Caps) again next year to support Pemex, Mexico's state oil company. The newspaper also reported that the company ended the first three quarters with losses for a third consecutive year and remained far from its Strategic Plan's hydrocarbon-production and crude-processing targets, despite expensive crude.
What to watch
A Treasury announcement specifying financial-support instruments for Pemex next year.
Brazil: dollar closes at R$ 5.44, according to Valor Economico
With fiscal adjustment still under debate in Brazil's government, Valor Economico reported that the dollar closed the week at R$ 5.44, up 9.04% from the last week before the electoral period. It described this as the largest weekly increase since the 2008 crisis. The outlet reports resistance to structural spending-control measures over concerns about contradicting campaign promises.
What to watch
An announcement of structural spending-control measures by Brazil's government.