Diesel Prices Rise 5% With Tax Resumption, Surpassing 2018 Truckers' Strike Levels

Diesel Prices Rise 5% With Tax Resumption, Surpassing 2018 Truckers’ Strike Levels

Written by Valdemar Medeiros

Published on 10/05/2021 at 18:40

Posto de combustíveis no Rio de Janeiro (RJ) 29/05/2018 REUTERS/Sergio Moraes

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Diesel Prices Increased by 0.21 Cents Due to the Exemption That Eliminated PIS and COFINS Taxes on Fuels Not Being Renewed. The Price Has Already Surpassed the Levels from the 2018 Truck Drivers Strike, and There Is Fear of Another Strike Due to the Discontent of a Large Portion of Drivers

In the first week after the return of federal taxes on diesel fuel, the price of the fuel increased by 5%. The new diesel prices have exceeded those from 2018, a date marked by the truck drivers’ strike when dissatisfied drivers with freight rates and diesel fuel costs halted cargo transport for about ten days. By order of the current president, Jair Bolsonaro, COFINS and PIS were set to zero in March and April of this year (2021). Due to the government not renewing the tax exemption, these taxes returned to previous levels of R$ 0.33 per liter on May 1st.

ANP Data on Diesel Fuel

According to research by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), regular diesel cost R$ 4.20 per liter in the week ending on May 1st, based on the average of the stations included in the research nationwide.

A week later, ending on May 8th, the average rose to R$ 4.41 per liter, an increase of R$ 0.21 or 5%. The more expensive S10 diesel increased almost in the same proportion.

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Diesel Prices Before and After the Truck Drivers’ Strike

https://www.youtube.com/watch?v=gRejSLjFd1k

Profession Reporter – 2018 Truck Drivers’ Strike

In 2018, in the week ending on May 19th, before the truck drivers’ strike, a liter of diesel cost on average R$ 3.60, a value that has currently increased to R$ 4.11 due to inflation and taxes. With the truck drivers’ strike, the average price of diesel fuel in the country reached R$ 3.83 in the week ending on June 2nd, 2018, which currently corresponds to R$ 4.38.

The end of the tax exemption worsened the mood of transporters, as a large portion had already expressed dissatisfaction with the federal government’s lack of commitment to fulfilling promises made to avoid a new truck drivers’ strike.

Understand the Purpose of the Decree Signed by President Jair Bolsonaro

In March, the price of diesel had already been increased, as were other fuels. However, then President Jair Bolsonaro signed a decree that eliminated the collection of PIS and COFINS (mentioned at the beginning of the text) on fuels.

The goal was to nullify any potential movement that could lead to a new truck drivers’ strike, a threat that has been looming since the end of 2020.

Diesel Prices Rise 5% With Tax Resumption, Surpassing 2018 Truckers’ Strike Levels

Diesel Prices Increased by 0.21 Cents Due to the Exemption That Eliminated PIS and COFINS Taxes on Fuels Not Being Renewed. The Price Has Already Surpassed the Levels from the 2018 Truck Drivers Strike, and There Is Fear of Another Strike Due to the Discontent of a Large Portion of Drivers

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Diesel Prices Rise 5% With Tax Resumption, Surpassing 2018 Truckers’ Strike Levels

Diesel Prices Increased by 0.21 Cents Due to the Exemption That Eliminated PIS and COFINS Taxes on Fuels Not Being Renewed. The Price Has Already Surpassed the Levels from the 2018 Truck Drivers Strike, and There Is Fear of Another Strike Due to the Discontent of a Large Portion of Drivers

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