Rising Fuel Prices Hurt Small Businesses Like Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs)

Written by Fabio Lucas Carvalho

Published on 29/09/2021 at 23:03

Foto: Valter Campanato / Agência Brasil

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Fuel Prices Soaring Also Harms Some Important Sectors of the Economy

The high fuel prices are severely harming the economy, further complicating the lives of low-income Brazilians, being one of the major villains of inflation. In addition to directly affecting the purchasing power of Brazilians, the rise in gasoline and diesel prices also impacts small businesses, such as MEIs and MPEs.

This is what the 12th Survey on the Impact of the Pandemic on Small Businesses from Sebrae and FGV states. The research showed that the expenses of companies with inputs, goods, and fuels represent the largest impact on small businesses. This is indicated by a total of 63% of micro-entrepreneurs (MEIs) and 61% of micro and small companies (MPEs) that were surveyed in the study.

App Drivers and Deliverers Affected

Including other important expenses such as electricity and gas costs, the number of businesses that feel impacted rises to 76% among MEIs and 77% for MPEs.

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As most food delivery app workers are MEIs, they are directly affected by the fuel prices, which directly harms their earnings. The same happens with app drivers.

Gerônimo Centurion, president of the App Drivers Association of Foz do Iguaçu (AMAFI), stated that the current fuel prices are making it unfeasible to continue working as an app driver.

Commerce, businesses, enterprises, fuel price — ***Image of a woman using a credit card machine. Photo: Stock Image***

“There will increasingly be a flight of professionals, but it is inversely proportional, meaning that as people leave, others are entering. However, new drivers won’t stay long, no more than three months. The app doesn’t adjust the fare because it knows about this volatility,”

Sebrae does not bring good news. The institute points out that the current scenario for small businesses might get even worse. The reason is that the accumulated increase in gasoline prices has already reached 31% this year, while diesel has risen by 28%.

Rising Fuel Prices Hurt Small Businesses Like Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs)

Fuel Prices Soaring Also Harms Some Important Sectors of the Economy

App Drivers and Deliverers Affected

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