Lula's Gas Subsidy Boost: Aiming to Win Hearts and Elections

Brazilian President Lula da Silva is set to launch 'Gas do Povo,' expanding gas subsidies for 15.5 million low-income families. The initiative replaces 'Auxilio Gas,' aiming for improved social support and electoral gain. With a significant budget increase, the program will distribute free gas cylinders to eligible households.

Brazilian President Luiz Inacio Lula da Silva is poised to unveil an enhanced cooking gas subsidy program, 'Gas do Povo,' targeting low-income Brazilian families. The initiative, slated for launch on Thursday, aims to augment the government's popularity in anticipation of the upcoming presidential election.

This new scheme, replacing 'Auxilio Gas,' is set to triple the program's reach to 15.5 million households. Unlike previous cash transfers lacking purchase guarantees, beneficiaries will now receive free gas cylinders at designated retailers, ensuring direct support. The Mines and Energy Ministry emphasizes this direct distribution approach enhances the program's efficacy.

The current fiscal year's subsidy cost of 3.6 billion reais is already accounted for within the federal budget, with next year's requirements projected to hit 5.1 billion reais, marking a 42% budgetary surge. Eligibility includes families listed in the government's unified registry for social programs, with a monthly per capita income capped at half the minimum wage, approximately 759 reais.

(With inputs from agencies.)