Bolsonaro publishes decree and posts can now buy ethanol from suppliers | Economy

The measure is part of an effort by the federal government to reduce fuel prices
Sophia Bernardes

The measure is part of an effort by the federal government to reduce fuel prices

President Jair Bolsonaro published a decree on Tuesday that regulates the direct sale of ethanol by producers to gas stations. The measure is part of an effort by the federal government to reduce fuel prices. The new rules anticipate the efforts of the National Petroleum Agency (ANP), which would have 90 days to define the rules.

On Monday, the government announced that it would anticipate a provisional measure issued in August that authorized the direct sale of ethanol by producers to gas stations, without the need to go through distributors. In addition, the rule also authorizes the so-called “flagship”, which allows the stations to sell fuel from any supplier, not just that of the station’s flag.

The discussion on the subject already existed in the ANP at the time, but it was left aside. In August, when the provisional measure was published, representatives of distributors contested the measure, claiming that it could increase tax complexity and make room for irregularities and tax evasion, without reducing the price of the pump.

The government justified the anticipation of the measure because of the “potential benefits that the anticipation of the flexibility of the tutelage to the flag may provide fuel consumers.”

According to the decree published on Tuesday in the Official Gazette of the Union, the stations must expose the origin of the fuel at the fuel pumps.

The government believes the measures will alleviate persistent fuel price inflation due to the devaluation of the real against the dollar.

Under current rules, stations that display a distributor’s flag are prohibited from selling fuel from another supplier. This limitation will no longer exist, as long as the stations indicate the origin to the client.