Brazil: Petrobras has “cushion” to contribute to fuel policy, says Finance Minister

The Minister of Finance, Fernando Haddad, said on Monday (27) that the government can use the “cushion” of Petrobras in the solution to contain fuel prices with the re-encumbrance.

The minister stressed that the state-owned company’s participation would respect the International Parity Price (IPP), Valor Econômico reported.

“There is a cushion [under the PPI] that allows to decrease or raise fuel prices and can be used. This can be a contribution [from Petrobras],” he said.

Earlier, the government announced that it would resume the collection of federal taxes on fuel. However, the taxation model will differ from the one practiced until last year, with a higher tax on fossil fuels.

Haddad also said that a new meeting would be held this Tuesday (28) to discuss the issue with President Luiz Inácio Lula da Silva (PT) and the Minister of Civil Household, Rui Costa.

“We will close with the president [Luiz Inácio Lula da Silva] tomorrow; we have small details to close,” he said.

With information from Gazeta do Povo

More: Brazil news in English, every day from The Rio Times.