SAO PAULO, April 23 (Reuters) - Brazil's government will

formally announce on Thursday a reduction of federal taxes on

gasoline, it said in a statement, adding it will hold a press

conference at 5 p.m. local time (2000 GMT) to provide details

about the measure.

The move comes as President Luiz Inacio Lula da Silva's

government seeks to mitigate the impact of higher oil prices on

consumers due to the conflict in the Middle East. The

administration last month scrapped federal taxes on diesel.