Gasoline prices in Brazil are a frequent source of public frustration — but the structure behind the pump price is more complex than most people realize. The Petrol Group team explains how the price is formed.
The Brazilian gasoline price structure
The pump price of E27 gasoline (27% ethanol, 73% gasoline) in Brazil in 2025 is typically composed of: Petrobras refinery price (~45-50% of pump price), ICMS state tax (~25-30%, highest single component), PIS/COFINS federal taxes (~8-10%), CIDE federal tax (~4%), distribution margin (~5-8%), station margin (~5-8%). The largest variable is the ICMS, which varies from 25% to 34% depending on the state.
Why prices differ so much between states
ICMS rate differences between states can create pump price variations of BRL 0.40-0.70/liter for identical fuel. São Paulo ICMS on gasoline: ~25%. Some northeastern states: up to 34%. This is why fuel is notably cheaper in São Paulo than in many other states despite similar logistics costs.
See: station profit margins and how fuel distribution works.