This Saturday’s Fuel Rise (6/18) Will Impact the Entire Economy – Economy
Yadunandan Singh 1 week agoBusinessComments Off on This Saturday’s Fuel Rise (6/18) Will Impact the Entire Economy – Economy15 Views
The readjustment of 5.18% in gasoline and 14.25% in diesel for refineries, announced yesterday by Petrobras, should put even more pressure on inflation, which is already at 11.73% in the 12-month period. As Brazilian logistics are strongly linked to road transport, all goods transported by road — practically everything consumed in the country — will have their price increased because of freight, causing a chain reaction.
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According to projections by the Brazilian Institute of Economics of Fundação Getúlio Vargas (FGV Ibre), the new increase in fuel prices will have an impact of 0.14 percentage points on the IPCA, but will be diluted between June and July. “On this month’s IPCA, only half of this increase should be priced. In my estimation, inflation this year will be at 9.2%, already considering the effects of this fuel adjustment”, pointed out Andr Braz, coordinator of price indices at institution.
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The increase announced yesterday will occur only in the oil company’s profit margin and does not include the part of the resale stations, which are free to set prices. But the state itself has an estimate of the effect that the readjustment will have on the pump. According to Petrobras, the consumer price of gasoline may rise, on average, from R$2.81 to R$2.96 for each liter sold at the pump — a variation of R$0.15 per liter. In the case of diesel, the state-owned company’s share should go from R$4.42 to R$5.05 for each liter sold at gas stations, an increase of at least R$0.63 per liter.
According to Andr Braz, the measure that limits the ICMS (Tax on the Circulation of Goods and Services) on essential goods can still mitigate this increase. “If there is a reduction in ICMS, it may be that inflation will be below 9% at the end of 2022”, evaluated Braz.
Sindtanque warns of risk of shortages at gas stations
The president of Sindicombustveis-DF, Paulo Tavares, said that there are already distributors in Brazil passing on the readjustment. “In Campinas, they already passed on this increase yesterday,” he said.
The announcement of another increase has mainly concerned those who use the car as a means of work, who already see themselves without alternatives. “It will make my monthly income difficult, because the more I have to pay to work, the lower my profit. And since I work in this area, I depend on prices. So that hurts me a lot”, said app driver Joo Lucas Arajo, 27 years old, who is already thinking about changing tactics to accept the races. “I’ll have to select the ones that are most worth it.”
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.