While Brazilians pay R$10 a liter for gasoline, Bitcoin country lowers prices

Charlie Taylor

The price of a liter of gasoline and diesel has been rising a lot in Brazil and discussions about the increase dominate social networks and circles of friends. Meanwhile, in El Salvador – the country of Bitcoin, the price of a liter of gasoline is falling. , thanks to the reduction of taxes on the product.

A liter of gasoline in Brazil exceeded R$10 in some regions

Gas station in AcreThere are many reasons that explain the aggressive rise in the price of a liter of gasoline, which has been on a constant increase for years and is nothing new for the Brazilian, whose Central Bank is known for having very high inflation targets compared to with other countries, which ends up directly influencing the increase in the price of goods and services. Thegarretwe even show the prices of 2014 and 2018 and compare the purchasing power per liter of gasoline for ‘Roberto’, with R$1,300 and for ‘Alice’ with 1 BTC in each of these years.Know more: How much did a liter of gasoline cost in BTC in 2014 and 2018? Many proposals for solutions to contain the increase were also on the agenda, including totalitarian and counter-economic measures, such as the price freeze, which could have disastrous consequences for the economy as already has been demonstrated countless times in history.

Almost half the price of a liter of gasoline is from state and federal taxes.

According to 2019 information from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), on average 44% of the value of fuel in the country is just from state (such as ICMS) and federal taxes. At a price of R$10 per liter, R$4.40 is just taxes. Removing these taxes would return the price of gasoline to that of 2019.table with the price composition composed of cost and taxesThe price composition varies from region to region (and state to state), but we took as a basis what was practiced in the Southeast region in 2019 (it may have already changed) to give a basis for how the R$10.00 is formed. called Fuel without Tax, whose objective is to reduce the tax on fuel to 0%.

Bitcoin country cuts gas tax and the price of a liter drops

The tax reduction strategy was carried out by Nayib Bukele, president of El Salvador, which in 2021 became known as the Bitcoin Country, as it was the first country in the world to make the currency legal tender. scandalously rising in price in Brazil, the country of BTC is seeing the price decrease, which has a positive impact on the entire economy of the country, by reducing transport costs that directly interfere with the entire supply chain.

Brazil has not yet followed the example of understanding bitcoin as money that can be used on a daily basis, so we can only believe that perhaps the example of tax reduction will be followed. It is important to remember that this does not depend only on the government (which would have a faster overall impact), but each governor of each Brazilian state can do their part.Read more:Buy Bitcoin on Coinext
Buy Bitcoin and other cryptocurrencies on the safest exchange in Brazil. Register and see how simple it is, visit: https://coinext.com.br

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