Brazil: Bolsonaro promises to go to court to force Petrobras to reduce fuel price

RIO DE JANEIRO, BRAZIL – President Jair Bolsonaro said on May 12 that he would go to court to try to force Petrobras (PETR3; PETR4) to reduce fuel prices. He admitted, however, that the chances of getting a favorable decision are remote and complained of interference from the Judiciary in government measures to address the effects of high inflation.

“We expect a reduction in prices. We will have to appeal to the courts. We know that when I appeal, it is almost impossible for me to win,” said Bolsonaro during a live broadcast on social networks on Thursday, May 12.

The president opened war against the state oil company for the constant readjustments in fuel prices, which influenced the increase in inflation. The skyrocketing prices are one of the main points of concern for Bolsonaro, who is seeking reelection. Without being able to interfere in the state-owned company, the Chief Executive exonerated yesterday the Minister of Mines and Energy, Bento Albuquerque.

“We are doing everything possible at Petrobras, without interference, for it to understand its role. Understand how? By making changes here, as we did in the Ministry of Mines and Energy. Minister Bento was the one who asked to leave. We had a small problem at Petrobras; he decided to sign his exit from the Ministry of Mines and Energy,” he said.

The president again said that Petrobras has “absurd profit” and charged again that governors reduce the ICMS tax rate to lower the price of diesel and cooking gas.

“I gave up the federal tax on diesel and cooking gas, but unfortunately, with the ICMS, the state tax, I sanctioned a new law, and given the ICMS calculation formula, diesel had to reduce R$0.30 (US$0.06). A few weeks later, in a Confaz meeting, they increased it by 0.30 cents. The ICMS tax collection on fuels has been breaking records year after year,” he complained. Bolsonaro also blamed the current increases on Petrobras’ price interference during the Workers’ Party government.

IPI IN THE MANAUS FREE TRADE ZONE

The chief executive criticized the decision of the Federal Supreme Court (STF) Justice, Alexandre de Moraes, to suspend the reduction of the Tax on Industrialized Products (IPI) for the Manaus Free Zone (ZMF).

“Regrettably, our dear Justice accepted a lawsuit, an injunction, so that the products produced in the Manaus Free Trade Zone would go back to having a higher price. This proposal of ours does not attack the jobs in the ZFM. The careerist politicians, like Omar Aziz, make demagogy as if they were the protectors of the ZMF.

With information from Estadão