Luna repeats Bolsonaro and claims that Petrobras is not to blame for the price of gasoline | Economy

Silva e Luna reinforces the weight of ICMS on fuel price despite the increase in price at refineries
MARCELO CAMARGO/BRAZIL AGENCY

Silva e Luna reinforces the weight of ICMS on fuel price despite the increase in price at refineries

The president of Petrobras, Joaquim Silva e Luna, on Tuesday endorsed the speech of President Jair Bolsonaro, pointing out the responsibility of state taxes in the advance of fuel prices. The state tax makes up an important part of the price of fuel, but there has been no increase in the rate recently. The adjustments made were carried out by Petrobras itself.

“The second part, which is the price, corresponds to a series of taxes and other terms of the equation,” said the general to the General Committee of the Chamber of Deputies

Distribution and resale, cost of anhydrous ethanol blend, state taxes, ICMS, federal taxes such as CIDE, PIS, COFINS etc.

“These taxes here are in the chain and what it affects, because it ends up impacting everyone else, is exactly the ICMS,” he said to the deputies.

Silva e Luna said that this is what causes an increase, when there is a fluctuation in the prices charged by the state-owned company:

“It’s a cascading effect and it generates some volatility in the price of fuel.”

Likewise, he attributed part of the responsibility for raising the price of cooking gas to state taxes.

“I remember that federal taxes are not levied on gas cylinders, these taxes are zero. What is levied are state taxes and taxation on resale.”

For the president of the state-owned company, the company is part of the solution to the problem and there is an urgent need to explore the oil reserves:

“Petrobras is part of the solutions. The idea of ​​extracting oil from the pre-salt to transform it into wealth is important. We have oil reserves, they have a period of use. We are in a hurry in the pre-salt, we are focused on that. By this, we had to do a more complete portfolio management so that it can invest in what is more and better and divest in some refineries.”

High prices

The deputies heard the president of Petrobras, Joaquim Silva e Luna, in a general commission in the plenary of the House. The president of the Chamber, Arthur Lira (PP-AL), justified the debate by pointing to the general rise in prices, with increases in fuel and gas, in addition to the operation of thermoelectric plants, due to the water crisis.

The country is facing a moment of acceleration in inflation – in August, the Broad Consumer Price Index (IPCA) has accumulated a high of 9.68% over the last 12 months. This increase was driven by the rise in fuel prices. In the year, gasoline accumulates an increase of 31.09%, ethanol 40.75% and diesel 28.02%. The cooking gas also went off.

It is Petrobras that controls these prices, which also suffer from exchange rate pressure, as these costs are pegged to the dollar. Earlier this year, Silva e Luna took charge of Petrobras after President Jair Bolsonaro complained about fuel prices. Since he took office, there have been successive increases in fuel prices, which have not cooled off.

The state-owned company also operates in thermoelectric plants, which are being activated during the water crisis. With hydroelectric plants with low reservoirs, it is necessary to resort to thermal plants to guarantee the supply of electricity. The problem is that the production of this energy costs more, in addition to being more polluting.

In September, for example, the government created a new tariff flag, called water scarcity, in the amount of R$ 14.20 for every 100 kilowatt-hours consumed. This surcharge will be charged to all consumers from September to April 2022, with the exception of beneficiaries of the social tariff. The worsening of the water crisis requires this type of measure to offset the additional cost of energy generation, especially at the end of the year, which has been considered a critical period.