IBP Statement – Enactment of Complementary Bill 125/22 Strengthens the Legal Fuel Market and Tightens the Fight Against Organized Crime
The Brazilian Petroleum, Gas and Biofuels Institute (IBP) firmly believes that the presidential enactment of Complementary Bill (PLP) 125/22, now Complementary Law (LC) 225/2026, represents a significant milestone for Brazil’s fuel sector and for the fight against organized crime. By establishing objective criteria for identifying habitual tax debtors, the new legislation distinguishes occasional noncompliance from systematic and recurring tax evasion practices used as a business model.
With Complementary Law 225/2026, the government now has more effective tools to address market distortions that penalize law-abiding companies and undermine the business environment. The measure helps remove from the market operators that act outside the law, reducing practices such as fuel adulteration, the use of fraudulent tax documents, and other schemes that negatively affect the entire fuel supply chain.
The benefits are broad and far-reaching. For the legal market, the new law promotes a more level playing field and greater legal certainty, encouraging investment in efficiency, logistics, and innovation. For the government, it increases tax revenues without raising the tax burden, strengthening its capacity to invest in essential public policies. For society, it represents a concrete step toward weakening criminal organizations that use the fuel sector as a source of funding.
By enacting PLP 125/22, Brazil sends a clear message of its commitment to legality, fair competition, and economic security. This is a fundamental step toward strengthening the formal fuel market and consolidating a regulatory environment that is fairer, safer, and aligned with international best practices.
