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Amid rising fuel prices, Bolsonaro says he has ‘willingness to privatize’ Petrobras

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Bolsonaro made the statement in an interview with Novas de Paz radio in Pernambuco.

The President repeated the arguments of the past few months. He claims he is not to blame for the rising fuel prices. In addition, the president shows irritation when he is charged soaring prices.

Wednesday evening (13), with the aim of inducing price reductions, the Chamber approved a bill modifying the rules of incidence of the Tax on the movement of goods and services (ICMS) on fuels (video below).

House approves bill to amend ICMS calculation on fuels

House approves bill to amend ICMS calculation on fuels

The final fuel price is composed of the price invoiced by Petrobras in the refineries (linked to the international market, according to the government), plus federal (PIS / Pasep, Cofins and Cide) and state (ICMS) taxes, in addition to the taxes. distribution and resale costs.

In gasoline, there is also the cost of anhydrous ethanol. In diesel, there is the impact of biodiesel. The variations of all of these are what determine how much fuel the pumps will cost.

But the devaluation of the real against the dollar makes petroleum products more expensive for the Brazilian consumer, as the product is traded around the world in the US currency.

For Bolsonaro, his action as president on all these factors is limited.

“It’s very easy. Has gasoline increased? Bolsonaro’s fault. I’m ready… I’m already ready to privatize Petrobras. I’m ready, I’ll see with the economic team what we are doing. can do. What happens? I can’t… It’s not in control. I can’t steer the price of fuel better, but when it goes up, it’s my fault. It increases the cooking gas, and it is my fault, despite the reduction of the federal tax to zero, which I do not happen to a lot of governors, ”said the president.

During the 2018 election campaign, Bolsonaro said he “wouldn’t like” to see Petrobras privatized. At the time, he said the measure would only be taken “if there is no solution”.

Economy Minister Paulo Guedes, for his part, defended last month that Petrobras should join the “queue” of privatizations in the years to come.

Gerson Camarotti 'Bolsonaro' transfers responsibility 'to states and does not charge Petrobras'

Gerson Camarotti ‘Bolsonaro’ transfers responsibility ‘to states and does not charge Petrobras’

According to data from the National Extended Consumer Price Index (IPCA) released by the IBGE, in the past 12 months through September, gasoline rose 39.6% in the country and gas bottled 34.67%.

A survey by the National Petroleum, Natural Gas and Biofuels Agency (ANP) showed that the average price of regular gasoline at the pump reached BRL 6.092 per liter during the last week of September, the 8th consecutive weekly top.

In the case of fuels, the explanation for the rise in prices lies in several factors, but mainly in the value of oil and the exchange rate. The rise in the price of a barrel and the devaluation of the real against the dollar make it difficult to fall in values.

The dollar and the price of oil have had more influence on prices in Brazil since 2016, when Petrobras began practicing the International Parity Price (PPI), which is guided by fluctuations in the international market.

Bolsonaro also praised the approval in the House of a bill that changes the ICMS calculation in an attempt to reduce fuel prices. The text has yet to be approved by the Senate.

The proposal determines that the ICMS billed in each state will be calculated based on the average price of fuel over the previous two years.

Chamber approves proposal to modify ICMS fuel charge

Chamber approves proposal to modify ICMS fuel charge

Currently, the ICMS applied to fuels is based on the average price of gasoline, diesel and ethanol over the past 15 days in each state. In other words, every fortnight the basis of calculation changes – and begins to include the recent price movement.

Bolsonaro said this is not the “ideal project”, but that Lira approved “what is possible”. The MP estimates that the price drop could reach 7% this year.

Bolsonaro has been trying for months to hold governors accountable for the high prices of fuel and cooking gas, due to the collection of the ICMS, a state tax on these products.

Composition of the fuel price – Photo: G1 Economy

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