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Whose Fault Is It? Ethanol Prices in SC and RS Are Higher Than Gasoline Prices in SP After Petrobras Price Cut

Written by Daiane Souza
Published on 05/09/2022 at 11:05
Updated on 05/09/2022 at 11:06
De quem é a culpa, governador ou ICMS? Etanol em SC e RS tem preço mais caro que a gasolina em SP após redução da Petrobras
Fonte da imagem: Canva
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On Last Friday, September 2nd, Petrobras Announced a New Reduction in the Price of Fuel Liters Coming from Refineries. However, Analysts Argue That the Sudden Price Drops Are Caused by the Elections, Which Will Involve Jair Bolsonaro, the Current President of the Republic, and Luiz Inácio Lula da Silva from the Workers’ Party (PT).  Furthermore, the Price of Ethanol and Gasoline Liters Shows Significant Discrepancies Across Each State. 

Since July, Governors Accepted the Proposal to Reduce ICMS Rates on Fuels, Such as Ethanol, Diesel, and Gasoline, in Order to Control the Prices That the Public Would Pay at Gas Stations. Despite This, the States of Rio Grande do Sul (RS) and Santa Catarina (SC), Considered to Have the Highest Percentage of Votes for Bolsonaro in the 2018 Elections, Are Pricing Ethanol, Which Is Usually Cheaper, Higher Than Gasoline in São Paulo (SP) After Petrobras’ Reduction. 

Currently, Ethanol Is Being Sold for R$ 4.99 to R$ 5.30 in Southern Brazil. However, in São Paulo (SP), the Price of Gasoline Drop Below This, With Some Stations Charging Less Than R$ 4.60.  In the State of São Paulo, the price of ethanol is also lower, around R$ 3.1.

Due to the Drop in Fuel Prices, It Is Estimated That This Month of August, Inflation Will Be Negative at 0.73%, Being One of the Highest Rates Ever Recorded in the Country Before the Workers’ Party (PT) Took Control. The Deflation, or Drop in IPCA Indices, Was Caused by Control Over Prices Charged at Pumps and on Electricity Tariffs, Given That, Over the Last Two Months, Most States Have Been Opting for the Green Flag. 

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Petrobras Announces New Reduction on the Price of Gasoline. Source: CNN

Besides São Paulo (SP), Santa Catarina (SC) and Rio Grande do Sul (RS): How Are Other States Pricing Gasoline and Ethanol? 

Other States, Like the Rio Grande do Norte (RN), Are Significantly Reducing the Prices of Gasoline Liters, Which Are Being Sold for Less Than R$ 5 in Some Cities After Petrobras’ Reductions. This Drop Occurred After Gas Stations Flirted with Nearly R$ 8 for Several Consecutive Months. 

The Reduction Follows the Prices of Brent Crude Oil, As Currently, the Commodity Faces an Accumulated Increase of Only 30%, After Experiencing a Variation of Over 140% in Just One Year! Petrobras Argues That Its Prices Depend on Fluctuations in Commodities and the Dollar, and With the US Dollar Quote Above R$ 5,  The Impacts Have Drastically Affected the Pockets of Brazilians and on the IPCA, Making Freight More Expensive. Now, It Is Estimated That Freight, Transportation and Logistics Companies Will Face a Loss in 2022 Due to a 10% Inflation in the Sector That Could Not Be Passed on to the Final Consumer. 

Some Cities in Paraná (PR), Even With the Reduction of Gasoline and Ethanol Prices by Petrobras, Continue to Charge Different Values Above R$ 1 per Liter Compared to Neighboring States, Like Santa Catarina (SC). Prices Vary Significantly According to Each Region. 

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