ICMS reduction is ineffective and truck drivers strike ‘does not take long’, says association

Abrava (Brazilian Association of Motor Vehicle Drivers) said this Tuesday (14) that the reduction of ICMS on diesel is ineffective and that, given the prospect of a new price increase, a strike “is the most likely and not It takes too long”.

In a statement, the association led by truck driver Wallace Landim, known as Chorão, reinforces criticism of the government’s handling of the crisis, which has been announcing “tabajaras measures” with an eye on reelection, instead of focusing on changes in Petrobras’ pricing policy.

“Any percentage, of any product, that is announced to be removed from the price of fuel will be ineffective for its effective reduction”, says the text released this Tuesday, with comments on the approval by the Senate, on Monday (13), of a project that establishes a ceiling for ICMS on fuels.

Abrava argues that the impact of the measure will be temporary, as the market expects new adjustments in refineries to accompany the rise in international oil prices and exchange devaluation.

According to data from Abicom (Brazilian Association of Fuel Importers), the average price of diesel in Brazilian refineries is currently R$ 0.99 per liter below import parity, a concept used by Petrobras in its pricing policy.

It is the fifth day in a row with a lag above R$ 0.90 per liter in the price of diesel, a product that is currently scarce on the global market due to cuts in Russian production and greater use in thermal plants. In gasoline, according to Abicom’s estimate, the difference is R$ 0.73 per liter.

“Now, you don’t need to be an economist to reach the conclusion that two or three increases will consume all the reduction that is intended to be done through taxes, running the risk of the liter of these fuels being even more expensive than today”, says Abrava.

For the association, the effort to reduce taxes on fuel shows “a desperate government”. In addition to changes at Petrobras, the entity asks that diesel be paid for by the transport contractors, as is the case with tolls.

“This travel expense needs to be fully reimbursed, leaving the self-employed professional with their freight free of travel expenses”, he suggests, asking for support for Senator Lucas Barreto’s bill (PSD-AP) that establishes reimbursement for fuel expenses.

“The truth is that, one way or another, maintaining this cruel Petrobras pricing policy, without guaranteeing that the truck driver will have his travel expenses fully reimbursed, the category will stop”, says Abrava.

“If it’s not because of a strike, it will be because of paying to work. A strike is the most likely and it doesn’t take long”, he concludes.