Average price of regular gasoline exceeds the level of R$ 6 at gas stations in the country, says ANP | Economy

The average price of gasoline surpassed the level of R$ 6 at gas stations in the country this week, according to a survey carried out by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) and released this Friday (3).

Within a week, the value of a liter of regular gasoline rose from BRL 5.982 to BRL 6.007, high of 0.42%.

What makes gasoline and diesel prices go up?

What makes gasoline and diesel prices go up?

The price of a liter of gasoline has already exceeded the R$7 range in some regions of the country – this week, the highest price found by the ANP was R$7,199.

The agency also found that the average value of a liter of diesel increased from BRL 4,608 to BRL 4,627, which represents an increase of 0.41% in the period.

  • ‘If it grows more, the profession ends’: rising fuel prices have already led 25% of app drivers to give up

Finally, the price of a liter of ethanol rose from BRL 4,562 to BRL 4,611 in the week, an increase of 1.07%.

In 2021, fuel became one of the villains of inflation, responsible for severely affecting the budget of Brazilian families – already harmed by the rise in food and electricity.

The prices charged at the bombs became a reason for a clash between the president and the governors. President Jair Bolsonaro has publicly demanded that the states reduce the Tax on Circulation of Goods and Services (ICMS) so that, in this way, the prices of gasoline and diesel fall.

But what analysts say is that the devalued real has contributed to the increase in fuel prices. And what gives strength to this movement of loss of value of the Brazilian currency are the various uncertainties of investors regarding the direction of economic policy of the Bolsonaro government.

In recent weeks, the country has seen an intensification of the institutional crisis with threats made by the president to the elections and to other powers. Combined with Brazil’s weak fiscal framework, and doubts about the quality of the reforms that the Bolsonaro government can pass in Congress, these uncertainties drive the country’s dollars away – and prevent an appreciation of the real, which, at the end, could contribute to a drop in fuel prices.

Understand how the political crisis affects the Brazilian economy

Understand how the political crisis affects the Brazilian economy

Fuel sales prices follow the value of oil on the international market and exchange rate variation. Thus, a higher price of the commodity and/or a devaluation of the real have the potential to contribute to higher prices in Brazil, for example.