Petrobras President blames ICMS for fuel prices

Petrobras President blames ICMS for fuel prices

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The president of Petrobras, General Joaquim Silva e Luna, said this tuesday (14) to deputies who blame the high price of fuels on the ICMS, a tax that “affects” because it “ends up impacting all the other” components of the price.

“In relation to fuel prices: initially we present the price of gasoline, which is one of the very sensitive issues that affects all of us. We want to demonstrate the following: the part that corresponds to Petrobras, which gives on the order of BRL 2 considering this amount of BRL 6, BRL 6 per liter, then enters the portion that Petrobras is responsible for covering the costs of production and refining of the depending on the oil, this route takes up to 10 years to reach the refinery”, said Luna, from the Chamber floor.

“Investments, interest on debt – remember that the company was heavily in debt, even in the short term – taxes and government participation. And the second part of the price corresponds to a series of taxes and other terms in the equation. Distribution and reviewing the cost (sic) of the ethanol mixture, and also state tax, ICMS, federal taxes – Cide, PIS, COFINS – etc.”, added.

“Of these taxes here, they are in the chain, which affects them because it ends up impacting everyone else, starting from everyone else, it is exactly the ICMS. In fact, any term in this equation that is modified (sic) modifies the entire equation. Necessarily, when there is a fluctuation in prices, it does not mean that Petrobras had a change in the price of its fuel. It is an effect that happens in a cascade and generates some volatility in the price of fuel”.