Gasoline drops 8% in 2022, but accumulates a 40% increase in the Bolsonaro government

Gasoline drops 8% in 2022, but accumulates a 40% increase in the Bolsonaro government

Even with the 8.4% drop in the price of gasoline in 2022, prices at pumps recorded an accumulated increase of 39.9% in the administration of President Jair Bolsonaro (PL). This Wednesday (20), a reduction in prices charged by Petrobras at refineries began to take effect. The state-owned company’s decision is motivated by the drop in oil on the international market. In addition, gasoline has also started to fall recently because of laws passed in Congress, limiting the collection of ICMS (Tax on Circulation of Goods and Services) on fuels in the states.

Did the price of gasoline really drop in 2022? Gasoline rose a lot in the first half of the year, reaching R$ 7.39 a liter at the end of June, according to data from the ANP (National Agency for Petroleum, Natural Gas and Biofuels). In July, however, it had an abrupt drop, for several reasons. As a result, gasoline was 8.4% cheaper in the year. At the end of December 2021, the average price was BRL 6.63. Last week, the most recent data went to R$ 6.07 (R$ 0.56 less). This price still does not reflect the reduction made today by Petrobras.

The values ​​are nominal, that is, they do not consider the inflation of the period.

And in the Bolsonaro government, what it happened? Despite the drop in 2022, gasoline has gone up a lot in the other years of the current government. As a result, under Bolsonaro, gasoline is up 39.9%. At the end of 2018, before the current president took office, gasoline cost, on average, R$4.34. It means an increase of BRL 1.73 compared to last week’s average price (BRL 6.67).

Why are prices falling? In June, Congress passed a law of interest to the Bolsonaro government, which limited the collection of ICMS in states to 17% or 18%. The maximum amount applied depends on the percentage charged, in each state, for items considered essential. All 26 states, including the Federal District, began reducing the tax to follow the new law. The impact of the cuts reached the bombs.

What else helped bring prices down? In addition to changing state taxes, the law passed by Congress also zeroed the collection of federal taxes on gasoline until the end of 2022. The collections of PIS/Pasep, Cofins (Contribution for the Financing of Social Security) and Cide ( Public Domain Intervention Contribution).

Will price drop further? Probably because Petrobras reduced the price of gasoline at refineries by R$0.20 per liter. The value goes from R$ 4.06 to R$ 3.86 (-4.93%). But there is no guarantee that prices will fall for the driver, or fall at the same rate. Distributors and service stations are free to set their prices.

Why did Petrobras reduce the price of gasoline? Petrobras adopts a policy that links fuel prices to dollar and oil quotations on the international market. Oil, in particular, rose sharply at the beginning of the year, mainly because of the War in Ukraine. In the wake of this rise, Petrobras made successive price increases. Now, however, oil is falling. The price of a barrel, which used to be around US$ 140, today costs less than US$ 110.

That is why Petrobras decided to reduce prices for the first time since December last year.

Source: Uol

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