Taxation Of Oil Exports From Petrobras Is Discussed In Congress As A Way To Lower Fuel Prices

Meeting This Monday, 20, Aims to Discuss Petrobras’ Fuel Pricing Policy and Oil Export Prices

This Monday (20), as part of the parliamentary offensive against Petrobras, a meeting of Congress has been scheduled to discuss the proposal for taxation on Brazilian oil exports. Given the rising oil oil prices, the potential revenue from the Export Tax (IE) obtained from the sale of oil produced by the state company abroad is increasingly significant. In this sense, the intention is that its collection will be used to offset the decrease in fuel prices.

The meeting was convened by the president of the Chamber, Arthur Lira (Progressistas-AL), and will include the presence of party leaders to discuss Petrobras’ pricing policy, which is currently linked to the international market.

According to the magazine Exame, exports reached US$ 30 billion last year, when the average price of a barrel was around US$ 70. Today, on the other hand, the forecast for brent oil prices in August is around US$ 113. Thus, if the average is considered at US$ 110, exports could amount to nearly US$ 50 billion this year.

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Parliamentarians Also Aim to Double Petrobras’ Social Contribution on Net Profit

In reaction to the price increase of diesel and gasoline, Lira also announced that lawmakers are expected to approve a proposal to double Petrobras’ Social Contribution on Net Profit (CSLL) to offset the difference in diesel costs abroad or provide vouchers for truck drivers, taxi drivers, and app drivers outside the spending cap.

According to the president of the Chamber, the proposal is similar to one already existing in the United States, formulated by President Joe Biden. In the country, oil companies pay 21% in taxes on profits, with the intention of doubling them to 42%.

For the CSLL to come into effect, a three-month period is required. An expansion of the Income Tax, in turn, would only begin to be collected next year. Currently, the CSLL rate charged on oil companies is 9%.

Lira stated in an interview with the GloboNews channel that Congress should change the pricing adjustment policy of fuels, which is currently associated with the dollar price used in the international market. According to him, Petrobras does not disclose how its pricing policy is accounted for, necessitating discussion on this regard and holding Cade accountable for the existing monopoly in the company.

Danilo Forte Also Supports Export Tax on Oil

Deputy Danilo Forte (União-CE), rapporteur of the PEC concerning biofuels, which is part of the package announced by the government to lower fuel prices, believes that this is the right moment for the implementation of the Export Tax. For him, the exemption to Petrobras is useless if the Brazilian people are not benefiting from it.

Additionally, Forte is also the rapporteur of Provisional Measure 1118, which restricts, until the end of this year, the use of tax credits resulting from social contributions (PIS/Pasep and Cofins) to fuel producers and resellers. Thus, to grant a subsidy, the government will need to open an exception in the spending cap. However, there is already a PEC in the Senate to change the rule and allow the Union to compensate states that reduce diesel and cooking gas to zero.

The two proposals in question may be used for changes that the leadership decides to propose during today’s meeting. Furthermore, another project, PL 1472, authored by Senator Rogério Carvalho (PT-SE), may also be used as part of the political offensive launched against Petrobras after the company adjusted diesel and gasoline prices.

This project has already been approved by the Senate and has the support of the president of the body, Rodrigo Pacheco (PSD-MG). It creates pricing guidelines for gasoline, diesel, and liquefied petroleum gas, and contains loopholes in the text that lead to changes in Petrobras’ pricing policy, as desired by the government and the Centrão leadership.

Experts Classify the Project as Confusing

According to experts, the project is confusing, weakens the pricing freedom policy, and contains gray areas, as it establishes that the internal prices practiced by producers and importers should refer to the average quotes of the international market, the internal production costs, and the import costs “as applicable.” They argue that the term “as applicable” could be used in any way, generating future problems for price control.

The project also provides for the development of a stabilization account to reduce the impact of price volatility. Pacheco intends for the funding of this account to come from the dividends paid by Petrobras from the company’s profits.

Through his Twitter account, the Senate president stated that if the situation with fuel prices is out of control, the government should accept sharing Petrobras’ large profits with the population, through a price stabilization account during times of crisis.

The economic area is opposed to the creation of this account and the adoption of subsidies. Petrobras members declare that to change the pricing policy, it will be necessary to amend the State Companies Act and then the statute. One of the obstacles is also the autonomy of the company’s Governance and Compliance director. If he deems the matter under discussion to violate the company’s governance and compliance, he has the power to veto it.