Bill Promoting Changes to Fuel Pricing Policy for Gasoline and Diesel Practiced by Petrobras and Taxing Oil Exports to Be Voted Next Tuesday (12/07)

The People Can No Longer Bear Cooking Gas at 10% of the Minimum Wage and Gasoline Costing R$ 8, Up to R$ 9. Those Paying the Bill Are People with Lower Purchasing Power

The voting on the text of Bill (PL) 1,472/2021, which promotes changes in the fuel pricing policy practiced by Petrobras, has been postponed to next Tuesday (12/07) in the Senate. The text also establishes the creation of a tax on the export of crude oil, which would finance a fund to cushion the variation in the value of derivatives.

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The PL aims to change the policy adopted by the state-owned company in 2016 of price parity with imports (PPI). This methodology uses as a reference for adjustments in gasoline, diesel, and cooking gas the price of oil in the international market and costs incurred by importers, such as transportation and port fees.

If the project succeeds, domestic prices for these products will reference not only the international market pricing and import expenses but also internal production costs, which decoupled from the exchange rate would drive prices lower.

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Additionally, the text dictates that the Executive Branch regulate the use of price bands to establish limits for fuel price variations, defining the frequency of adjustments and compensation mechanisms. The mechanism sets a maximum limit for variations in retail oil prices, thus avoiding sharp price increases.

The People Can No Longer Bear Cooking Gas at 10% of the Minimum Wage and Gasoline Costing R$ 8, Up to R$ 9.

The original author of the text, Senator Rogério Carvalho, proposed that the band system be financially enabled by establishing a fuel price stabilization fund. However, the rapporteur removed this point due to an initiative defect.

— Despite the undeniable merit, there is a legislative competency defect in Article 6, which creates the Stabilization Fund, which is why we will propose a wording adjustment, maintaining the objective of the proposal, which is to have instruments for stabilizing petroleum derivative prices. It is a special fund of an accounting nature and, therefore, cannot be created by a parliamentary initiative bill — he explained.

— The only thing that the CAE cannot do is remain silent and fail to vote. The government seems not to understand that the people can no longer bear cooking gas at 10% of the minimum wage and gasoline costing R$ 8, up to R$ 9. Those paying the bill are people with lower purchasing power. It is necessary to find a solution for the country regarding this fuel issue — stated the committee president, Otto Alencar (PSD-BA).

To Ease the Burden of Rising Gasoline, Ethanol, Diesel, and GNV Prices, Consumers Turn to Internet Kits Promising Water-Powered Cars Starting Below R$ 200

The best of Brazil is the Brazilians; with gasoline, ethanol, diesel, and GNV prices skyrocketing, there is no shortage of advertisements for accessories promising to reduce fuel consumption in vehicles. The novelty on the internet is a device that promises to convert conventional combustion engine automobiles into “water-powered” cars using a product known as a hydrogen kit.

This gadget being offered on social media and e-commerce sites has a starting price of less than R$ 200, but can exceed R$ 1,000 depending on the brand and configuration. However, the promise remains the same: the “technology” utilizes electricity from the alternator to extract hydrogen from water, which is then stored in a small tank.

Is a Water-Powered Car Possible? Watch the Video Below to Understand the Process: