Haddad: Petrobras prices can solve fuels – 02/27/2023 – Market

The Minister of Finance, Fernando Haddad (PT), said this Monday (27) that the government may use a “cushion” within Petrobras’ pricing policy to compose a solution for fuels.

The folder has already confirmed that it will resume the collection of taxes on gasoline and ethanol, which in itself could have an impact on prices charged at gas stations, affecting consumers’ pockets.

“Petrobras’s current pricing policy has a cushion that allows fuel prices to increase or decrease, and it can be used,” said the minister.

Haddad’s statement signals that some price adjustment may be made by Petrobras.

According to Abicom (Brazilian Association of Fuel Importers), the price of gasoline in refineries is 7% higher than that practiced in the international market – the equivalent of R$ 0.21 per liter, or R$ 0.20 considering only the poles operated by Petrobras.

“There is a mattress,” said the minister. “This could be one of the contributions.”

Haddad stated, however, that this is not a change in the company’s pricing policy, but rather a solution “inside” the PPI (import price parity). “Within the PPI means respecting the PPI,” he said.

He did not give further details on how this contribution by Petrobras would work. A new meeting between Haddad, President Luiz Inácio Lula da Silva (PT), Minister Rui Costa (Casa Civil) and Petrobras President Jean Paul Prates is scheduled for this Tuesday.

The Abicom survey shows, however, that the differential between domestic and international gasoline prices usually fluctuates. On February 14, for example, the association indicated a difference of R$ 0.04 in the liter of fuel in relation to that practiced abroad.

Earlier, the executive secretary of the Treasury, Gabriel Galípolo, traveled to Rio de Janeiro to meet with Petrobras’ board of directors and discuss solutions for fuel prices.

The economic team intends to resume taxation on gasoline and ethanol, with a higher rate for fossil fuel.

Before the exemption of fuels was adopted in the government of Jair Bolsonaro (PL), the federal tax rates were already different. The amounts were up to R$ 0.69 per liter of gasoline and R$ 0.24 per liter of ethanol.

The Treasury stated, via its press office, that “100% of the collection is assured” projected with the resumption of taxes on fuels, as announced on January 12th.

On the occasion, Haddad announced a package of measures to reduce the expected fiscal gap for 2023. The projected collection with the re-encumbrance of gasoline and ethanol from March 1st is R$ 28.9 billion.