SAO PAULO: Brazil's federal government is in talks with states to reduce taxes on fuel, newspaper O Estado de S. Paulo reported on Friday.

Citing sources, the paper said the federal government wants states to adopt a flat tax on fuel. Currently, states can change taxes on fuel frequently.

The Economy Ministry and the presidential palace did not immediately comment on the matter.

Brazilian President Jair Bolsonaro said he planned to meet on Friday with the CEO of state-controlled oil company Petroleo Brasileiro SA (Petrobras) to discuss diesel prices, though added he would not interfere with its pricing policy.