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Home Petrobras lowers the price of gasoline and diesel for the third consecutive time in refineries, but why does this value not reach the final consumer?

Petrobras lowers the price of gasoline and diesel for the third consecutive time in refineries, but why does this value not reach the final consumer?

2 February 2020 to 17: 40
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Petrobras price gasoline diesel fuel bolsonaro government

In a social network, the current president said that Petrobras is doing its part, but state governments do not want to lose revenue through ICMS

President Jair Bolsonaro today (2nd) emphasized that Petrobras has reduced the price of fuel at refineries (gasoline and diesel) for the 3rd consecutive time, but under public inquiry, he has placed the responsibility of reducing the highest of all taxes, ICMS (Tax on Circulation of Goods and Services). See here some RJ rates as an example.

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In an attempt to make these reductions reach the final consumer and not depend so much on Petrobras, the president wants to change the legislation so that the tax is charged in a different way, directly at the “origin”, to prevent the state surcharge. Understand Bolsonaro's explanation below:

“For the third consecutive time, we lowered gasoline and diesel prices at refineries, but prices do not decrease at service stations, why?

Because the governors charge, on average, 30% of ICMS on the average amount charged at the pumps of the stations and update only every 15 days, harming the consumer.

As a rule, governors do not admit to losing revenue, even if the price of a liter in refineries drops to R$ 0,50 a liter.

What can the President of the Republic do to reduce the price of diesel/gasoline for the consumer?

Change the legislation by Complementary Law so that the ICMS is a fixed amount per liter, and no longer by the average of the gas stations (in addition to other measures).

And now? How long? How is the interest of the governors? Etc …

The President of the Republic will forward a proposal to the Legislature and fight for its approval”, concludes the president.

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