Petrobras President Criticizes Possible Taxation on Crude Oil Exports as State-Owned Company Sells Its Refineries

Written by Paulo Nogueira

Published on 23/11/2021 at 18:16

Updated on 23/11/2021 at 22:54

O Diretor-Geral da Itaipu Binacional, Joaquim Silva e Luna, participa de audiência pública na comissão de minas e energia da Câmara dos Deputados.

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The President of Petrobras, General Joaquim Silva e Luna, Criticized This Tuesday the Government’s Plan for Taxing Crude Oil Exports from Brazil.

According to the company’s president, this could be detrimental to Petrobras’s business and discourage future buyers of the shares in the indirect privatization process being negotiated in the National Congress.

According to the president, there are other ways to stabilize the price of petroleum derivatives in the domestic market that do not involve such a severe restriction on the operations of Brazil’s largest oil company.

The statement was made by the president during a hearing in the Senate Economic Affairs Committee to explain the rise in fuel prices to the senators.

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What We Know About Crude Oil Export Taxation So Far?

The export tax on crude oil aims to create a stabilization fund for fuel prices, thus preventing the rising dollar and oil barrel prices in the international market from continuously pushing up fuel prices, one of the factors for the recent inflation increase.

The president was not the only one to speak negatively about the tax. The Director of Commercialization and Logistics, Cláudio Mastela, classified the idea of creating this fund through taxing crude oil exports as: “an easy way out with a terrible effect.”

Petrobras, crude oil exports. sale of refineries — ***Petrobras is being excessively blamed, according to the company’s president. Image source***: ***money times***

Petrobras’s dissatisfaction with the tax proposed by the Senate arises precisely from the fact that the new strategy of the mixed-capital company seems to involve much more crude oil production and export than its refinement, a strategy evidenced by the sale of Petrobras refineries to other groups in the market.

Alternatives for Crude Oil Export Taxation

In his speech today, the president of Petrobras also stated that there are more interesting alternatives for creating this fund than taxing crude oil.

One of the examples cited is the use of Petrobras’s dividends as a source of income for creating and managing this fund, as this year the company’s dividends reached a new record.

General Silva e Luna also stated that society is exaggerating Petrobras’s role in the price increase process “The rise in fuel prices does not correspond to Petrobras and is being attributed to it.”

Other Perspectives on Fuel Price Increases.

Petrobras, crude oil exports. — **Not all voices agree with the president of Petrobras. Image source: O Globo.**

Despite General Silva e Luna’s statements, there are other authorities and researchers who disagree with his assessment.

The researcher from the Institute of Strategic Studies of Oil, Natural Gas, and Biofuels, Carla Ferreira, recently commented to UOL that a large part of the responsibility for fuel prices lies precisely with Petrobras.

According to her, these increasingly higher prices are reflections of the pricing policy adopted in 2016, which links the price of oil sold nationally to the value of oil barrels in the international market, and intends to charge in dollars, which causes the values involved in this transaction to become even higher with the instability of the real.

Petrobras President Criticizes Possible Taxation on Crude Oil Exports as State-Owned Company Sells Its Refineries

The President of Petrobras, General Joaquim Silva e Luna, Criticized This Tuesday the Government’s Plan for Taxing Crude Oil Exports from Brazil.

What We Know About Crude Oil Export Taxation So Far?

Alternatives for Crude Oil Export Taxation

Other Perspectives on Fuel Price Increases.

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Petrobras President Criticizes Possible Taxation on Crude Oil Exports as State-Owned Company Sells Its Refineries

The President of Petrobras, General Joaquim Silva e Luna, Criticized This Tuesday the Government’s Plan for Taxing Crude Oil Exports from Brazil.

What We Know About Crude Oil Export Taxation So Far?

Alternatives for Crude Oil Export Taxation

Other Perspectives on Fuel Price Increases.

In the cold desert of Ladakh, where it hardly rains, engineer Sonam Wangchuk created the ice stupa, a tower that freezes winter water and stores it for irrigating crops in the spring, a simple engineering feat that mimics nature.

Almost 6,000 residents live concentrated along a single street nearly 9 km long in the interior of Poland. Houses form a continuous row, and behind them, narrow agricultural strips emerge, creating one of the most unusual rural patterns in Europe.

Libya built over 4,000 kilometers of underground pipelines to bring water from the Sahara to coastal cities in a project that the government itself called the Eighth Wonder of the World.

Chinese woman planted trees for decades while sand buried part of her house, received $5,000 from an American in 1999, and helped transform the desert into a forest of 8 million trees in China.

Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

They planted a sea of eucalyptus to produce cellulose, but the monoculture turned into a green desert, dried up springs and rivers, and pushed families out of regions in Minas Gerais and Bahia.

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