Gasoline and ethanol rise more than expected after resumption of federal taxes – 03/10/2023 – Market

The price of gasoline at Brazilian stations rose another 6.1%, or R$ 0.32 per liter this week, with transfers from the resumption of collection of federal taxes. According to the ANP (National Agency of Petroleum, Gas and Biofuels), the product was sold, on average, at R$ 5.57 per liter.

With the increase, the transfer accumulated since the week before the reencumbrance already adds up to R$ 0.49 per liter, a value well above the R$ 0.26 estimated by the market, considering that the new rate is R$ 0.47 per liter and Petrobras cut its selling prices by R$0.13 per liter to minimize the increase.

The price verified by the ANP this week is the highest since the beginning of August 2022. The agency found the most expensive gasoline in Brazil in São Paulo, at R$ 7.19 per liter. The cheapest was found in Vitória de Santo Antão (PE), at R$ 4.58 per liter.

The market today does not see room for the state-owned company to promote a new cut in the price of gasoline, since the company has been operating with lags in relation to the import parity, a concept that simulates how much it would cost to bring the imported product.

According to Abicom (Brazilian Association of Fuel Importers), the average price of gasoline at Petrobras refineries is 3%, or R$ 0.11 per liter, below par.

The president of Petrobras, Jean-Paul Prates, has already said that the company will no longer follow this indicator, which is the target of criticism among PT members and allies. But the change, he said, still depends on the renewal of the board of directors and the board of directors of the company, which should be concluded in April.

The price of hydrated ethanol, which also had a high tax burden, rose 2%, or R$ 0.08 per liter, this week, to R$ 3.96 per liter. In the previous week, the product had risen by R$0.09, almost five times the value of the PIS/Cofins rate established by the government.

The high reflects price spikes at the mills shortly after the resumption of taxes, pointed out by distributors and posts as an industry strategy to take advantage of the high gasoline prices and recover profit margins.

Prices fell again this week and, this Thursday (9) they were already cheaper than before the fuel tax reenactment.

The price of S-10 diesel continued to fall this week, closing at BRL 6 per liter, 0.3% lower than last week. It is the fifth straight week of decline, responding to cuts promoted by Petrobras in refineries.

The product reached the lowest price since the beginning of March 2022, in inflation-adjusted values. Since the beginning of the low cycle, the accumulated drop is 6%, or R$ 0.39 per liter.