Brazil’s Minister of Mines and Energy advocates CADE investigation into Petrobras

RIO DE JANEIRO, BRAZIL – Minister of Mines and Energy Bento Albuquerque advocated an investigation by the Administrative Council for Economic Defense (CADE) into Petrobras for alleged abusive fuel prices.

“I particularly think that is very good. Because the economic activity defense agency will make sure if its practices are right or wrong,” the Minister said.

He stressed that the Ministry does not interfere in the company’s pricing policy and that it would be “frivolous” to claim that the company has committed an abuse of power, something that is being investigated in two CADE proceedings.

“If Petrobras is engaging in something contrary to economic defense, it will answer for it, it will pay for it. It will be investigated by the consumer and competition defense agency, which is CADE,” the Minister emphasized.

According to the Minister, CADE’s investigation is not intended to control fuel prices. But it may correct company practices, if any distortion is found.

Bento Albuquerque emphasized that the ICMS (VAT on Sales and Services), charged by the states, is the most significant factor in the costs passed on to consumers. The Minister criticized the National Governors Forum coordinator Wellington Dias, who this weekend accused the Congress for not passing the Tax Reform, which could lower fuel costs.

“I see that it is a political statement. This doesn’t hold up because the states were the most benefited from this (collecting ICMS on fuels). If they were concerned about this, why are they increasing collection, when the country is experiencing a pandemic? Isn’t it time for everyone to do their part?” he said.

After 90 days of ICMS freeze, the tax, which continued to be charged albeit with no adjustments, will be updated every two weeks, as it was until October. Governors do not yet know how this decision will impact the price of fuel.

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