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Bolsonaro Expects a Reduction of At Least R$ 0.20 Per Liter; Adoption of the Measure Will Lower Fuel Prices for Consumers
President Jair Bolsonaro defended yesterday, 16th, the direct sale of ethanol from refineries to fuel stations, without the need to first go through distributors, as is currently the case, and stated that the government expects a reduction of at least R$ 0.20 per liter, with the adoption of the measure will lower fuel prices for consumers. Petrobras Reduces Sulfur in Maritime Fuel to 0.5% for the Environment
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— God willing, we will break this barrier and our forecast is that the price will drop by at least R$ 0.20 per liter of ethanol because it avoids what we call the detour of alcohol — said the president during his weekly live broadcast on social media.
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With an investment of R$ 870 million and an annual capacity of 720,000 tons, Petrobras returns to producing urea in Paraná and addresses the dependence on approximately 80% of Brazilian imports of nitrogen fertilizers, a segment pressured by the war in Ukraine and conflicts in the Middle East.
The president assessed that “it makes no sense” the transportation that is done by trucks without direct sales. “The truck leaves the refinery after going 100, 200, 300 kilometers and then returns 300 kilometers to stay 10 kilometers from the refinery; that makes no sense.” He also argued that the trade of fuels without intermediaries could prevent traffic and accidents on the roads.
President Jair Bolsonaro will talk to the President of the Chamber, Rodrigo Maia (DEM-RJ), to ask him to expedite the processing of a project that is in the House and would allow ethanol producers to sell the fuel directly to gas stations.
According to the President of the Board of Directors of Novabio, Pedro Robério de Melo Nogueira, if approved, the measure could come into effect immediately. Nogueira estimated that the proposal could be approved by the deputies by March.
President Bolsonaro also stated that direct sales would depend on a decision from the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) or an action from Congress to revoke a resolution from the regulatory body that regulates the commercialization of ethanol.
According to Nogueira, there is pressure from distributors to maintain the current sales model. “They are defending their business, and we will not defend their business,” he said.
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