Increasingly higher, gasoline and cooking gas prices are complex; understand

Concern for a large part of the Brazilian population, the readjustments in the prices of fuel and cooking gas have been frequent. The economics analyst at CNN Priscila Yazbek explains the reasons why this has happened.

Gasoline price is composed of 11% of distribution and resale; 16.3% of the cost of anhydrous ethanol; 27.8% of ICMS (Tax on Circulation of Goods and Services); 11.6% of federal taxes; and 33% of Petrobras’ realization, that is, the cost of gasoline when it leaves the refinery.

The price composition of the gas cylinder is 37% of resale distribution; 14.9% of ICMS; 48.1% of Petrobras’ achievements; and 0% for Pis/Pasep and Cofins, since since March the federal government has exempted these federal taxes for cooking gas for an indefinite period.

“The increase in the price of oil abroad, the Brent type, which is a reference for our market, has already risen 37% this year, as global demand increased in light of the recovery of the economies. This boosted the price abroad, and should keep the price at high levels as economies continue to pick up,” said Yazbek.

Gasoline price composition
Gasoline price composition / CNN

Another factor in the increase in the value of oil is the dollar, which is also high, close to R$ 5.30. “This ends up influencing fuel prices because they follow global market prices, as it is a commodity.”

“The energy sector, mainly, defends a nominal price for the ICMS. So, they think that this state tax could be a little lower, but that could aggravate the state’s public accounts”, he says.

Gas price composition
Composition of gas price / CNN