Bolsonaro says gasoline and gas prices are ‘cheap’

President Jair Bolsonaro (non-party) has again stated that gasoline and cooking gas in the country are “cheap”. In a conversation with supporters on his return to Alvorada Palace, late yesterday afternoon, Bolsonaro said that the population needs to understand how the price of these items is formed before criticizing the federal government.

A survey by the ANP (National Agency for Petroleum, Natural Gas and Biofuels) shows that the price of gasoline is already over R$ 7 per liter at Acre gas stations and the cost of a 13 kg gas cylinder has already reached R$ 100 in the region North.

Gasoline is cheap, cooking gas is cheap. People have to understand the price composition, otherwise they end up blaming me for everything that happens in Brazil.
Jair Bolsonaro, in conversation with supporters

Bolsonaro has claimed that gasoline and cooking gas are cheap because they come from Petrobras refineries at a much lower price than that charged to the final consumer. What makes them more expensive, according to the president, are the other stages, such as transport, the companies’ profit margin and the ICMS (Tax on the Circulation of Goods and Services), collected by states.

However, it makes no sense to consider the price of these items at refineries to say that they are cheap, as it is not possible for consumers to buy gas and gasoline directly from Petrobras. Likewise, the consumer does not buy food directly from the producer and what counts is the price he pays in supermarkets.

According to data from the IPCA-15 (National Consumer Price Index – Extended 15), released today by the IBGE (Brazilian Institute of Geography and Statistics), the price of gasoline has risen by 39.52% in the last 12 months at gas stations in the country .

Bolsonaro distorted data to defend ‘cheap’ prices

Live on Facebook last Thursday (19), Bolsonaro had already said that gasoline and gas were “cheap”. However, the president distorted a series of information to defend his position, as pointed out by the UOL Check.

At the time, Bolsonaro made a mistake in the price of gasoline at Petrobras refineries — he said it was R$ 1.95 per liter, when, in fact, the value was R$ 2.03 — and omitted that the fuel accumulates a high of 51 % at the state-owned refineries in 2021.

On cooking gas, the president said that he had zeroed the federal tax, but the cut promoted by his management relieved the chain by just R$ 2.18, which represents 2.3% of the average price in the country.

In addition, the government discount ended up being absorbed by other factors that make up the price of cooking gas, mainly by adjustments in Petrobras refineries. Today, 48.2% of the final value corresponds to Petrobras’ price and 37% to distribution and resale. The product has undergone successive increases in 2021.