Gasoline price rises again after three falls – 04/10/2023 – Market

The average price of gasoline rose again at Brazilian stations after three consecutive weeks of decline. Last week, a liter of fuel was sold, on average, at R$ 5.50, compared to R$ 5.48 recorded in the previous survey by the ANP (National Agency of Petroleum, Gas and Biofuels).

The increase of 0.36% occurs just over a month after the resumption of the collection of federal taxes on gasoline, adopted by the government in early March. Despite having recorded three consecutive weeks of decline, a liter of gasoline has already accumulated a high of R$ 0.42 since the week before the reenactment.

The maximum price per liter of gasoline found by the agency in the last week was R$ 7.19, in São Paulo (SP), while the lowest price, R$ 4.44, was recorded in Campinas.

Gasoline will be even more pressured in the coming months due to the change in the ICMS (state tax) collection model, which takes effect in June. At the end of March, the states set the new rate at R$ 1.22 per liter, lower than the value of R$ 1.45 initially projected.

The new ICMS model provides for the collection of a single national value in Reais per liter and only from fuel producers and importers.

Diesel, on the other hand, maintained its downward trend, with an average price reduction for the ninth consecutive week. The average price per liter of S-10 diesel in the last week was R$5.84, down 0.34% compared to the previous survey.

The continuous drop is a reflection of two cuts promoted by the state-owned company since the beginning of President Jean Paul Prates’ management.

The price of diesel at the pumps, however, may also come under pressure in the coming weeks. Since April 1st, the mandatory percentage increase to 12% of the mixture of biodiesel and diesel has been in force, which was previously 10%. The measure will lead to an increase of R$ 0.02 in the price of fuel this month, according to the Minister of Mines and Energy, Alexandre Silveira.

The product will also be pressured by the change in the ICMS collection model, starting in May. The new rate will be R$ 0.95 per liter, higher than the average currently practiced, which should further impact the fuel price.

The changes still do not cover hydrated ethanol, which, according to the ANP, was sold this week at R$ 3.88 per liter. The value represents a drop of 0.2% (or R$ 0.01) compared to last week.