Diesel Price Rises Again As Truck Drivers Demand Oil Export Tax To Ease Fuel Costs

Truckers’ Complaints, Which Led to a Historic Strike Against Diesel Fuel Prices in 2018, Remain Constant to the Government

After the price of diesel rose again following the end of a temporary federal tax exemption that lasted for two months, the CNTRC (National Council of Cargo Road Transport), which gathers representatives of truck drivers, advocated for the taxation of oil exports and the use of the proceeds to reduce taxes on fuels. The request was made yesterday (05/25) by the group in an open letter to President Jair Bolsonaro.

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The leadership of Petrobras was changed this year by the Government, which appointed General Joaquim Silva e Luna in place of Roberto Castello Branco. The change occurred due to complaints about the pricing policies adopted by the state-owned company.

The Government stated that, this month of May, the price of diesel is unbalanced and that Petrobras “will aim for profit, yes, but will also aim for social responsibility”.

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Remembering That in 2018 Truckers Held a Historic Strike Against the Value of Diesel

The demands of truck drivers, who led a historic strike against diesel prices in 2018, continue with constant complaints from President Bolsonaro himself about the cost of fuels.

In the letter sent to President Bolsonaro, the CNTRC requests that the Government adopt taxation on crude oil exports “as an immediate measure,” while other requests should be examined, such as ending the pursuit of import parity.

“The resources from the taxation on crude oil exports could be used to compensate States and the Union for reducing fuel taxes,” suggested the truckers’ group.

Since Luna took office on April 19, Petrobras has made only one price adjustment (a drop for gasoline and diesel), announced on April 30. The international scenario contributed as prices had some stability.

Petrobras Gasoline Sold to Fuel Distributors Accumulates a High of Over 40% This Year, and Diesel 34%

Even with the drop given by the current president of Petrobras, the state-owned gasoline sold to fuel distributors has accumulated a high of over 40% this year, while diesel has increased by 34%.

Amidst these discussions, the Brazilian Association of Fuel Importers (Abicom) estimates that the average price of Petrobras gasoline is currently 2% below import parity and diesel 3% below, making external purchases unfeasible for its members.

In the letter, the representative of truck drivers also states that the current Petrobras management has publicly expressed its intention to maintain the Import Parity Pricing policy, “only changing the correction intervals”.

The CNTRC also stated that it was not possible to obtain an immediate response from government agencies and Petrobras.

Ethanol Soars and Reaches Almost R$ 7 at Fuel Stations; Reduction Promises to Arrive in the Coming Weeks to Ease the Consumer’s Wallet

Gasoline and ethanol prices are skyrocketing every day at fuel stations and hitting consumers hard, who have nowhere to run. The price of ethanol is nearing R$ 7 in the southern region of the country, reveals research conducted by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) between the 1st and 21st of this month. According to Mario Campos, president of Siamig, the reduction will reach the pumps in the coming weeks and ease the consumers’ wallets.

Despite the rise in ethanol prices, the executive notes that production occurred — albeit lower than in previous years — and thus prices should drop soon at fuel stations, alleviating consumers’ wallets.

“The reduction will reach the pumps in the coming weeks in markets where ethanol is more competitive, such as São Paulo, Paraná, and Minas Gerais. However, price parity with gasoline is expected to be less common due to the smaller harvest,” he said.