Another drop in the price of gasoline: Fuel reaches 4,99 at distribution stations in the Federal District

With this reduction in the price of gasoline, the financial market reduced expectations of inflation in fuel prices for this year 2022

The president of Sindicombustíveis-DF (Retail Trade Union of Fuels and Lubricants of the Federal District), Paulo Tavares, declared that the service stations should pass on to customers the new reduction in fuel prices gasoline which was announced on Monday, the 15th, by Petrobras. Yesterday, for example, in the Federal District, the price of a liter of gasoline was around R$ 5,20, and at the Petrolino Post, in Taguatinga, fuel was sold at R$ 4,99 a liter.

Petrobras reduced by 4,8% the price of a liter of gasoline in sales to distributors in the Federal District, which meant a cut from R$ 3,71 to R$ 3,53. According to the company, the decrease in the price of fuel can mean an average reduction of R$ 0,13 in the price at the gas stations, if you consider the composition of the product that is sold, 73% gasoline and 27% ethanol.

“There is nothing in the law that obliges the stations to reduce immediately, to transfer the reductions in refineries to the final price sold at the stations. However, in practice, it always goes to the final consumer, he is always benefited”, said Tavares.

Lower fuel prices in the Federal District made the financial market lower expectations of inflation for 2022

The price reduction of fuel in the Federal District is leading the financial market to revise inflation expectations downwards for 2022. According to XP Investimentos, the projection of the Extended National Consumer Price Index (IPCA) for 2022 decreased from 7% to 6,8% .

For example, Victor Miguel, a 20-year-old resident of Águas Claras, started driving during the pandemic and stated that he was looking forward to lower gasoline prices. “It had been a long time since I felt any improvement, the value was very high. Now it's still high, but it's plausible,” he said.

Why is the price of fuel falling?

While the rise in the price of gasoline, diesel and other fuels was driven by the recovery of the world economy after the slump caused by the Covid pandemic, together with the sharp rise in the dollar against the real and the effects of the war in Ukraine, the recent fall in the fuel price (gasoline) came mainly in the wake of the cut in taxation on the product, especially in the Federal District.

In mid-June, the legislation came into force that imposes a limit on the rates of the Tax on the Circulation of Goods and Products (ICMS) levied on items considered essential, such as fuel, natural gas, electricity, communications and public transport in all states of Brazil and the Federal District.

O ICMS it is a state tax and makes up the price of most products sold in Brazil and is responsible for most of the taxes collected by the states and the Federal District. The same law also eliminated federal tax rates on gasoline, which in June represented around 10% of the price of fuel sold to consumers, according to data from Petrobras.

Current gasoline prices in the States and the Federal District

The beginning of the new law on taxes on fuel prices had a quick effect, in the same month, the price of gasoline passed on to consumers fell by 0,72%. In July, the reduction was 15,48%, according to data from the Brazilian Institute of Geography and Statistics (IBGE).

In the accumulated in 12 months, after 16 consecutive months with an increase in the digits, gasoline finally returned to have a discreet increase last month, of 5,64%.