Brazil’s government is aiming to raise about $6.2 billion from the country’s oil industry to help stabilize state finances, according to a Bloomberg report. One proposed method involves adjusting the reference prices used to calculate oil taxes.
Officials are also considering selling more oil exploration licenses to generate revenue. Brazil continues to face fiscal challenges due to rising public spending and weaker-than-expected income.
The sale of new licenses is seen as a safer option. The country still has unexplored areas in the presalt offshore zone, including sites near major oil fields such as Mero, Tupi, and Atapu. If approved by Congress, this year’s licensing round alone could bring in around $2.64 billion.
However, the outlook is mixed. Some recent drilling efforts in the presalt region have produced disappointing results, a local energy consultant told Bloomberg.
Adjusting reference prices for tax purposes could prove more difficult. Such changes may reduce oil company revenues and discourage further investment in the sector.
These economic measures come at a time when President Luiz Inácio Lula da Silva faces political pressure. His approval rating has dropped to a record low, and only 24% of Brazilians approved of the government’s performance as of February.
In March, the government also announced it would use money from Brazil’s sovereign oil fund to support the economy. The fund, created in 2010 to collect oil royalties, currently holds about $3.5 billion.