Bolsonaro orders withdrawal of fuel PEC stabilization fund

BRASILIA – Just two days after tell supporters that the Proposed Amendment to the Constitution (PEC) would already be agreed with the Ministry of Economy, the president Jair Bolsonaro determined the withdrawal of the stabilization fund from the text of the measure, according to the Estadão/Broadcast.

According to allies of the president, he was convinced by the minister of Economy, Paulo Guedes, that the measure would have little impact on containing the price of fuels and that would have a high cost to the public coffers. as anticipated the Estadão on the 20th, Guedes was always against the fund for the fiscal impact.

The jump in prices worries the government, due to the impacts of inflation on the president’s popularity, pre-candidate for reelection. Even with the fund, however, there is no guarantee that there would be a brake on prices, in view of the most recent rise in the value of oil – fuel prices in Brazil are linked to the variation of the barrel of oil and also the dollar.

The original idea would be to include in the PEC of fuels the creation of a price stabilization fund to diesel and Gasoline using a portion of the revenue from oil royalties to supply it. When the value of oil soared, in the domestic market the fund would be used to reduce the pass-through in the value of fuel at pumps.

Even though the creation of the fund was discarded, the idea of ​​sending to the Congress a proposal to reduce federal and state taxes levied on fuels, without the need to present an alternative source of revenue, as currently determined by the Fiscal Responsibility Law (LRF).

Bolsonaro hit the hammer on the withdrawal of the stabilization fund in a meeting on Thursday, 27, with ministers Ciro Nogueira (Casa Civil), Flávia Arruda (Government Secretary), Bento Albuquerque (Mines and Energy) and Paulo Guedes (Economy). Alexandre Silveira (PSD-MG), who will take a seat in the Senate next week, also participated.

The Planalto wants to hand over the authorship of the fuel PEC to Silveira, in addition to the leadership of the government in the Senate. The future senator, however, has not yet decided whether to embrace the leadership, according to PSD sources, to avoid friction with the independent and PT wings of the party.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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