Petrobras advocates pricing policy; Truck drivers talk about the strike

At a public hearing in the House of Representatives, the Petrobras Defend the current pricing policy of fuel Based on the value of a barrel of oil in the international market and dollars. On the other hand, representatives of truck drivers announced a trend towards a new strike, to be determined at the national meeting scheduled for the 16th in Rio de Janeiro.

The discussion took place on Wednesday (13) in a virtual hearing of the Committee for Economic Development, Industry, Trade and Services, which also included government representatives, oil companies and businessmen from various sectors.

The main objective was to find solutions to the continuous adjustments in the prices of petroleum products. Despite the numerous criticisms of the so-called policy of international parity (PPI) in place since the government of Michel Temer, the Director General of Sales in the domestic market in Petrobras, Sandro Barreto, said that the PPI ensures the full supply of the country. He explained that the market is necessary for the continuation of supply in the market without the risk of shortage. We have many players. Brazil imports a large amount of diesel, gasoline and LPG and these players are part of the supply chain.”

From January to September this year, resale prices posted an increase of 28% for diesel, 32% for gasoline, and 27% for liquefied petroleum gas, according to the Institute for Strategic Studies in Oil, Natural Gas and Biofuels (INEEP). This upward trend is expected to continue due to fluctuations in the international price of a barrel of oil.

strike

The president of the Brazilian Association of Motorists’ Association (ABRAVA), Wallace Landim, said the current situation is more serious than the one recorded in the 2018 truck drivers’ strike. The meeting on the 16th, according to Plinio Dias, president of the National Road Cargo Council (CNTRC). “Many truck drivers can’t even go home anymore, because fuel takes 70% to 80% (of income). Another 15% is borne by tolls. So, here’s our exasperation. Nobody wants a new date to stop., but “The path is set for that,” he said.

Even the director of the United Federation of Oil Workers (FUP), Mario Dalzot, asked the Federal Police and the Administrative Council for Economic Defense (CADE) to investigate alleged “collusion” and “cartel” between Petrobras managers and importing companies. On the other hand, government representatives stated that the prices of petroleum products are rising in the domestic market due to the rise in commodities, the depreciation of the real exchange rate, ICMS taxes and the profile of Brazilian imports.

alternatives

Deputy Director of the Fuel Division of the Ministry of Mines and Energy, Deivson Timbó, noted efforts to reduce prices through a zero PIS/COFINS rate on diesel and LPG sold in cylinders of up to 13 kg.

In search of a solution to the price hike, INEEP analyst Carla Ferreira pointed to alternatives to the current international parity policy. “The creation of a financial mechanism, the adoption of a tax that could have a varied rate on fuel, a stabilization fund and also consideration of production costs: that the adjustment factor for Petrobras was not only international prices, but also the calculation of prices for derivatives in the domestic market, taking into account the cost of refining, plus profit margins that can reward shareholders.”

Another alternative discussed was the bill (PL 750/21) which establishes the Petroleum Derivatives Price Stabilization Fund (FEPD), which is provided through the crude oil export tax. Deputy text Nereus Crispim (PSL-RS) Under analysis by the Economic Development Commission, it had a preliminary rejection opinion by the Rapporteur, Rep. Geneno Zuliani (Dim-Sp).

For the Brazilian Institute of Oil and Gas (IBP), the proposal alienates investors and goes against the principles of the free market and free competition. On the other hand, truck drivers and former legislative advisor Paulo Cesar Lima claim that the text makes the necessary adjustments in the pricing policy and in the tax model for the sector.

Deputy Debate Organizer Helder Salomao (PT-ES) He is also an advocate of Nereu Crispim’s proposal. “The price has gone up for a change in delivery and in the calculation methodology. I am not against the market’s interest in the profits of his business, but who should care about fuel prices cannot be the market, otherwise the market will do what is happening here: we earn in riyals and pay for fuel in dollars.”

During the discussion, the guests highlighted the consequences of high prices for petroleum products at all stages of the production chain, including the citizen’s basic food basket. The head of the National Confederation of Hydrocarbons and Lubricants (Fuel) Trade, Paulo Soares, noted that the high price drove customers away and reduced sales at 43,000 gas stations in the country.Soares also complained about the high tax burden: according to him, there is an average of 48% of PIS/COFINS and ICMS in the final fuel price.