Table of Contents 64q43
Prepare your pockets gasoline will increase in price once again. Last Thursday, 10th, Petrobras officially announced that both diesel, gasoline and cooking gas, LPG, will undergo an increase. The measure came into force this Friday, 11, and has caused strong discontent among the population. The main reason is linked to the conflict between Ukraine and Russia. 4b1h1m
The Brazilian state-owned company confirmed the 18,8% increase in gasoline, which will now be sold for R$3,86 per liter, compared to R$3,25 before. Diesel had the biggest increase, rising from R$3,61 to R$4,51, an increase of 24,9%. LPG, cooking gas, had an adjustment of around 16%, going from R$3,86 to R$4,48.
Is Russia to blame? 1w5l20
With the invasion of Ukraine, Russia has been suffering big economic sanctions by the United States, the main power today, and the new sector to be largely affected by the restrictions is the energy sector.
Last Tuesday, 08, US President Joe Biden stopped importing oil and Russian gas. Although the US only s for 3% of Russian exports, the news made the barrel of oil reach almost US$ 140, suring the US$ 115 that had been maintained in the international scenario.
As a result, the supply of a barrel of oil on the market will decrease, since Russia is the second country that exports these products the most. commodities. Likewise, the demand for fuel will be even greater and prices will tend to increase, following the logic of supply and demand. If product X is in high demand, but inventories are empty, the “way out” is to increase the sale price, as the supplier is also paid more.
Dollar and PPI “help make the situation worse” 6s6a1c
In geopolitics and international affairs, nothing is so simple that it can be reduced to just one factor. In addition to the sanctions on Vladimir Putin's country, the rise in the dollar also contributes to the increase in gasoline in Brazil. Barrels are traded in American currency, which is quoted in Brazilian currency at R$5,07 per dollar. Making a simple conversion, a barrel of oil around US$ 140 would be bought for around R$ 710,44.
Another villain for the increase in prices is due to the PPI, or the Import Parity Price, adopted in 2016 under Michel Temer. The PPI refers to the entire process to import a product, going through the stages of negotiation, transport, logistics, etc. Before this implementation, during Dilma's government, prices were controlled to try to stop inflation.
Taxes are also included… 59421
In addition to all the factors mentioned above, it is also necessary to mention the amount of taxes imbued in fuels, which end up increasing the value of the final product. Currently, the Senate has approved a reduction in fuel prices through a Bill.
PL 11/2020, approved on Thursday, 11, intends to create a single-phase rate with a single ICMS. In other words, the Goods and Services Tax would be levied on only one stage of fuel production. Now, the PL needs to go through the approval of President Jair Bolsonaro.
The Brazilian president, when asked by ers about the increase in the price of gasoline and other fuels, replied:
“All over the world it has increased. I don't set a price at Petrobras. I don't decide anything, no. Only when there is a problem does it fall into my lap.”
Why does Brazil import oil? 4d423x
For years it was always said that Brazil was – and still is – a reference in oil, pre-salt, drilling, and other related words. However, why does a country with a state-owned company as large as Petrobras, and which was once a symbol of the product, need to import barrels?
The big problem is structural. Although Brazil is self-sufficient in oil production, producing more than it consumes, Brazilian fossil fuel is difficult to refine, and Brazilian refineries, usually dating from the 70s, do not have as much capacity for the process. So we turned to imports, either to use an international product entirely or to mix it with Brazilian oil.
Will gasoline keep rising? 5p241k
Predicting the future is complicated, however, with the international instability caused by the conflict between Russia and Ukraine, and the variation in the price of a barrel of oil, there is a possibility that fuels will increase once again. Experts from Bank of America comment that the situation could extend until the price of a barrel reaches US$ 200.
However, caution must be exercised when speculating information of this type. The current international scenario is extremely volatile, even more so when dealing with large players such as the United States and Russia, as well as the European Union and China.
Huge lines and the fear of uncertainty 3l4s1k
After the news of the increase in gasoline, gigantic lines were created at stations around Brazil. However, the city of Jordão, in the interior of Acre, gained prominence after selling a liter of fuel for R$ 11,56.
In the northeast it is already speculated that the liter can reach R$ 9,00, while gas stations in Natal, in Rio Grande do Norte, are already selling the liter for R$ 7,99. According to information from journalist Ana Flor, from GloboNews, the government projects that the fuel can reach an incredible R$ 15,00 per litre.
New truck drivers crisis? e2s36
In addition to gasoline, diesel is an important fuel for road transport. If we consider that the Brazilian transport system is mostly carried out by trucks, and these same vehicles use excess diesel to run, the impact will be felt on different fronts.
With a 25% increase in diesel, truck drivers are likely to be largely affected, and this will affect the end consumer with higher prices on food and other goods due to higher freight rates. In Bahia, truck drivers are already trying to block the highway in an attempt to protest, although the leaders of the segment have not yet reached a consensus.
Sources: with the BBC, Examination e Sheet
See also other features 565d6d
With so many uncertainties about the conflict between Russia and Ukraine, we have prepared a article with the main reasons for the invasion to have taken place.
