Filling the tank in Brazil consumes 33% of the minimum wage
For Brazilians, President Bolsonaro is more to blame for the boom than the war in Ukraine, poll says
fill the tank Gasoline in Brazil costs more than in any other major Latin American economy. The high prices of fuels are one of the main complaints against Jair Bolsonaro months before the October elections, and Brazilians blame the president for the rise more than the invasion of Ukraine, according to an Ipespe poll carried out between May 16 and 18.
Although expensive fuel has become a problem worldwide, it is no wonder that the matter receives so much attention in Brazil, where the average cost of a liter of gasoline is R$7.28. Brazilians spend about a third of the minimum wage to fill a tank with an average capacity of 55 liters. In the US, this stop at the gas station costs about 6% of the monthly income of a worker earning minimum wage.
Bolsonaro responded to the growing pressure by supporting the bill that limits the ICMS on fuel charged by states. The proposal passed the House on Wednesday with overwhelming support and now heads to the Senate.
He has also fired three Petrobras presidents because of frustration with the prices that the state-owned company charges from distributors, following international levels.
Meanwhile, Petrobras shares have underperformed other oil majors since the start of the Ukraine war, largely because of investor concern that profits will be sacrificed at the government’s request to help curb inflation.
Petrobras’ status as a state-owned company that also has private investors puts it in an uncomfortable position when oil prices rise.
Bolsonaro says he supports privatization of the company to prevent the government from being held accountable when prices rise — a sharp shift from his stance four years ago, when he said selling control of the oil company was out of the question.
Former president Luiz Inácio Lula da Silva, who leads polls for the presidential elections, is in favor of Petrobras subsidizing the price of fuel rather than paying dividends to shareholders.
gasoline around the world
Percentage of the minimum wage needed to fill a 55 liter tank of gasoline:
United States: 6%
Source: O Globo Agency