Gasoline price drops again after ICMS, says ANP – 06/16/2023 – Market

The average price of gasoline at Brazilian service stations dropped again this week, according to the ANP (National Agency of Petroleum, Gas and Biofuels), after a sharp rise under the effect of the change in the ICMS collection model.

On average, the product was sold at BRL 5.40 per liter, BRL 0.02 less than the previous week, when the national average price had risen by BRL 0.21 per liter.

With data collection concentrated at the beginning of the week, the ANP survey, however, still does not capture the impacts of the cut of R$ 0.13 per liter promoted at Petrobras refineries this Friday (16), which should relieve the pocket consumer starting next week.

The price reduction at refineries also relieves the government, which intends to fully resume the collection of federal taxes on gasoline in July. The full rate of PIS/Cofins on fuel is R$ 0.22 per liter higher than the current rate.

The pullback after rising pumps the week before may reflect market accommodation. Until the ICMS change, the product came from a two-week period of drop in the pumps due to the price reduction promoted by Petrobras on May 17th.

The possibility of a new cut in June had been raised by the Minister of Finance, Fernando Haddad, as a measure to offset the increase in federal taxes. Petrobras initially denied an agreement with the government, but ended up announcing a reduction this Thursday (15).

According to the ANP, the price of hydrous ethanol, the main competitor of gasoline, fell by R$ 0.03 per liter at gas stations, to R$ 3.77. Generally, the price of fuel tends to follow that of gasoline, in order to maintain a level of competitiveness that attracts the consumer.

The price of S-10 diesel continues to fall, closing the week at R$5.10 per liter, R$0.03 less than the previous week. Since the price cut at Petrobras refineries, on May 17, the accumulated drop is R$ 0.47 per liter.

The price of cooking gas is also falling, with transfers of cuts in Petrobras refineries, but still at a slow pace. This week, the 13-kilogram cylinder was sold, on average, at R$ 103.55, R$ 0.47 less than the previous week.

After reporting by Sheet show that the price of fuel has been falling much less than the prices of gasoline and diesel, Senacon (National Consumer Secretariat) notified the distributors to explain why they did not pass on the reduction to the consumer.

The cost of the product can be equivalent to more than half of the budget of vulnerable families, among the poorest 10% of the Brazilian population, in states such as Pará, Bahia, Piauí and Maranhão. In other states, such as Ceará, Amazonas and Sergipe, the average price of cylinders represents more than 40% of the income of the poorest 10%.