SINDIPETRO: Understand why fuels are expensive in Brazil

Fuels in Brazil are expensive, mainly due to a set of internal and external factors, such as: high dollar price, international oil barrel price, tax burden, high value of Anhydrous Ethanol and Biodiesel. In addition, and perhaps the main factor, is the inability of Brazilian refineries to increase the volume of domestically refined oil.

LET’S SEE HOW THEY ARE TODAY, EACH OF THESE FACTORS:

The dollar exchange rate today (09/09/2021) is at R$5.3214; the price of a barrel of oil today is at US$ 72.71. Considering these values, the barrel of oil today would be around R$ 370.06. If this same dollar were today at BRL 4.00, the price of a barrel of oil would be traded on the domestic market, for BRL 290.00, that is, 27.6% cheaper, which would result in a cascade effect and it would push fuel prices down.

The tax burden will only be resolved with a deep and fair reform in Brazil’s taxes, as little depends on the Governors pointing to the possibility of lower taxes, because, if they give up the collection, they run the risk of falling into the tax waiver and that would lead to the opening of a case in the State Court of Auditors.

Another actor to be considered is CONFAZ – Council of State Finance Secretaries, where any matter only passes if it is unanimously approved, which makes any tax reduction much more difficult.

Anhydrous Alcohol (anhydrous ethanol) is another component that has constantly raised gasoline prices in the country, since the mandatory regulated blend of ethanol added to gasoline is 27%.

In this case, we also consider the silent increases in the price of anhydrous ethanol, whose price is given by the international variation of products derived from sugar cane, alcohol and sugar itself. CEPEA/ESALQ publishes weekly the quotation of values ​​for anhydrous alcohol and hydrated alcohol.

Due to the crop failure and the increase in the prices of these products in the international market, the producing mills prefer to export their products to the international market to the detriment of the domestic market, thus causing constant increases in the prices of the domestic market.

This is where the need for joint action by our federal deputies with the ANP – National Agency for Petroleum, Gas and Biofuels comes in, in order to press for the reduction of the percentage of anhydrous ethanol mixture added to gasoline. The reduction of these percentages would balance the prices of gasoline to the final consumer and would avoid the constant increase in the values ​​practiced at the pumps.

UNDERSTANDING THE “BIODIESEL” EFFECT

Biodiesel is a product made from plants (vegetable oils) or animals (animal fats) and reusable fatty products (grease and lubricants). It is a fuel to be used in cars and trucks with diesel engines.

Brazilian legislation foresaw, until October 30, the addition of 10% biodiesel in the composition of diesel oil. The ANP, by Provisional Measure, changed the mandatory mix from 10% to 12%, as of September 1, 2021. And for this single action, the values ​​had to be increased by R$ 0.011.

In another action, the ANP – National Agency of Petroleum, Gas and Biofuels, approved the Auction No. 81, of Biodiesel, whose value, as of September 1, 2021, became R$ 5.6582, a difference in compared to the previous auction, of R$ 0.173. Evidently, these changes had an impact on the values ​​of diesel oil sold at gas stations.

REFINING AND FUEL DISTRIBUTION CAPACITY

One of the most serious factors is the inability of Brazilian refineries to refine sufficient volumes for the consumption of the Brazilian population, since all the oil extracted from the so-called “Pre-Salt” is exported abroad in its entirety and is later imported in its own form. of Pure Gasoline and Diesel Oil S10.

If Brazilian refineries refined all the product extracted from the pre-salt, today, Brazil would certainly be a self-sufficient country, not only in production, but also in oil refining.

CONSIDERATIONS

SINDIPETRO-RO – Union of Posts Resellers, has on several occasions met with the Government of the State of Rondônia, in order to find solutions that enable a smaller increase in fuel prices for the final consumer.

In one of these meetings, Sindipetro-RO expressed its position on the need to change the methodology adopted for setting the ICMS – PMPF reference values, considering that it was calculated through a survey of prices published by the ANP, which consisted of in the use of the values ​​highlighted on the plates/totems of gas stations.

Since then, the State Government changed the price survey system and started to use data from SEFIN itself – State Secretariat of Finance, which uses data from its own systems, as they present, among others, the average prices actually charged by gas stations, which brought a significant drop in the indicators used as a basis for calculating the ICMS.

It is also important to point out that, in the search for new solutions to address the issue of the impact of ICMS on fuel prices, the State Government of Rondônia kept the ICMS-PMPF base agenda frozen for exactly five fortnights, in the period between March and May 2021, allowing stability in prices charged to consumers in the same period of time.

SINDIPETRO-RO does not intend to defend the Government, but recognizes the efforts that have been made by it to try to curb the escalation in fuel prices and minimize the impacts on consumers, so much so that today the State of Rondônia , have the seventh lowest ICMS nominal value, for gasoline, among all 26 states and the Federal District.

The retail activity of the fuel trade is one of the most supervised in the country, subject to constant inspections by CADE, PROCON, PUBLIC MINISTRY, LABOR PUBLIC MINISTRY, CIVIL POLICE, INMETRO, ANP and many other legislating and inspection bodies.

We often come across people trying to express individual opinions, usually political ones, speaking without knowledge of the facts and trying to accuse the Porto Velho fuel dealership of promoting the cartelization of the fuel market. Here we have the following to say: The same bodies mentioned above are open to receiving complaints, manifestations and requests for fact-finding. It is important to report abusive practices and unlawful actions practiced by any entity operating in the market.

SINDIPETRO-RO emphasizes its position in defense of the interests of the category and reaffirms that it will always seek dialogue and understanding, and above all, measures aimed at benefiting its constituents and their consumers.

Carlos Eduardo Moraes Valente – Executive Secretary of SINDIPETRO-RO