Thanks to parliament and government, gasoline price in Brazil may drop 21% -minister

RIO DE JANEIRO, BRAZIL – The Minister of Mines and Energy, Adolfo Sachsida, said Tuesday (28) that a 21% reduction in the average price of gasoline is possible, which would fall from the current US$5.21 to US$4.11 per gallon (R$7.39 to R$5.84 per liter) if the proposals approved by Congress and the measures adopted by the government are implemented (a reduction of R$1.55).

The data were presented to members of Congress in a public hearing in the House of Representatives. Among the measures included in the projections are the Supplementary Law 194/2022, which restricts the collection of state-level VAT tax on fuels, electricity, communications, and public transportation, and the measures on the taxation of diesel fuel, which were discussed in the Federal Supreme Court (STF).

The price of B S10 diesel fuel could be reduced by 1.7% of the national average price, from the current R$7.68 to R$7.55 (or R$0.13). For ethanol, the possible reduction is 6.1%, from R$4.87 to R$4.57 (or R$0.30).

The Minister downplayed the smaller reduction in the price of diesel, saying that it may appear that the impact of the measures on the price of fuel is smaller, but that is because federal taxes have already been set at zero since March.

In the case of liquefied petroleum gas (LPG), better known as cooking gas, data show that the current average price could fall by 2.3% from R$112.70 to R$110.07 (a decrease of R$2.63). The Minister stressed that federal taxes on the cylinder are already permanently set at zero.

SOMETHING IS WRONG AT PETROBRAS

Regarding the change of leadership at Petrobras, Sachsida reiterated that he sees the great challenge of the state-owned company at the moment in “management.” He said that “everyone agrees that there is something wrong with the current model of the company.”

After being nominated by Sachsida to chair Petrobras, Caio Paes de Andrade took office Tuesday. Andrade is the fourth president of the state-owned company appointed by the Bolsonaro government in less than four years, replacing José Mauro Coelho at the helm.
CPI and privatization of the state-owned company

On the possibility of creating a parliamentary commission of inquiry (CPI) on Petrobras, he said the college would focus more on the political aspects of the technical issues, but the Ministry of Mines and Energy (MME) would support the decision. “The MME is following the law. If the congressional decision is in favor of CPI, we will support it.”

As he did last week, Sachsida told a public hearing that Brazilian society must now decide whether it wants Petrobras in private or state hands.