Bolsonaro says government will work fuel prices – Money Times

Jair Bolsonaro
“So now Petrobras has been cleaned up, we are now starting to work on the issue of fuel prices,” said Bolsonaro (Image: REUTERS/Adriano Machado)

The president Jair Bolsonaro he said on Tuesday in conversation with supporters that the government will “start working” on the price of fuels, but it didn’t help what can be done besides charging, once again, for changes in the ICMS.

“So now the Petrobras (PETR4), we are now starting to work on the issue of fuel prices,” said Bolsonaro. “But it’s no use dealing with the price if the ICMS has this variable value, which interests the governors.”

The president has been constantly charged for the high value of fuels and cooking gas, which have seen record increases since last year. In some places, the liter of Gasoline it already reaches 7 reais, while the cooking gas canister is around 100 reais.

The increase in fuels led to the resignation of the then president of the state-owned company, Roberto Castello Branco, and its exchange for General Joaquim Silva and Luna, but still Bolsonaro could not contain prices.

Previous insinuations of some form of price control, however, have always led to adverse reactions from the financial market.

Bolsonaro sent Congress a bill that intends to transform the ICMS on fuels, charged by the States, into a fixed amount. Although the main reasons for the increase are the price of oil on the international market and the value of the dollar against the real, the president blames ICMS for the high cost.

On Tuesday, he said again that he intends to see the bill approved and said that governors increased the ICMS when the federal government zeroed the Cide, a federal tax, on diesel.

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