Brazilian Transporters demand fuel price reduction

RIO DE JANEIRO, BRAZIL – The Brazilian Association of Motor Vehicle Drivers (Abrava) filed a lawsuit this Monday before Brazil’s Federal District, demanding the suspension of the excessive fuel price policy of the state-owned oil company Petrobras.

According to the Association, the largest oil company, Petrobras, announced an increase of 18.8% in gasoline rates, 25% in diesel, and 16.1 percentage points in liquefied petroleum gas.

Given the taxes established, Abrava specified that the Brazilian people pay more than US$105 per barrel of oil after the price increase; on the other hand, the oil company’s production cost does not exceed US$20.

“Petrobras obtained in 2021 a record net profit of US$19.9 billion, the highest in its history, thanks to the increase in crude oil prices and the rise in fuel sales,” denounced Abrava.

Likewise, the Brazilian Association indicated that the increase in fuels and the impact on inflation rates were registered before the special military operation in Ukraine began, since the Central Bank of Brazil established an increase in interest rates to 10.75%.

“We are not against Petrobras making a profit; what we do not accept is that it should make a profit of 1,400% to the detriment of the suffering of Brazilians and mainly of those who work with transportation,” pointed out Abrava.

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