Pacheco clashes with Bolsonaro and Lira and associates high fuel prices with the government

Senate President Rodrigo Pacheco (PSD-MG) disagreed with part of the political class that focused their criticism on Petrobras for the announcement of a fuel price readjustment, by also associating the problem with the federal government.

Pacheco said that there is no difference between Petrobras and the federal government and asked that the administration of President Jair Bolsonaro (PL) agree to create a price stabilization account, using the profits of the Brazilian state-owned company as resources.

Pacheco’s statement clashes with the Chief Executive, who wanted to attribute responsibility exclusively to Petrobras for the rise in fuel prices. He even demanded solutions from Bolsonaro himself.

“If the fuel price situation is getting out of control, the government must accept to share Petrobras’ huge profits with the population, through a price stabilization account in times of crisis. After all, the Petrobras and government dichotomy does not exist , as the Union is the majority shareholder of the state-owned company and its board is appointed by the government. In addition, similar measures are being adopted by other countries in favor of their economy and their population,” Pacheco said in a statement.

The senator from Minas refers specifically to a bill that provides for the creation of a stabilization account, whose resources would be used to mitigate the impact of fluctuations in fuel prices. The proposal was approved in the Senate, but ended up shelved in the Chamber of Deputies.

The president of that House, as well as the federal government, are against the measure.

“The Senate approved numerous legislative matters that were within its reach and now expects quick and effective measures from Petrobras and its parent company, the Federal Government. Since the government is against discussing the company’s pricing policy and interfering in its governance, the stabilization account is an alternative to consider.”

Pacheco’s demonstration comes at a time when the president of the Chamber of Deputies, Arthur Lira (PP-AL), and Bolsonaro himself threaten to retaliate heavily against Petrobras and its directors for the announcement of the readjustment.

This Friday (17), Petrobras announced readjustments of 5.2% in the price of gasoline and 14.2% in the price of diesel, claiming that the oil market has undergone structural change and that it is necessary to seek convergence with the international prices.

After 99 days without increases, the average price of gasoline at the state-owned refineries will rise from R$3.86 to R$4.06 per liter. The price of diesel will go from R$ 4.91 to R$ 5.61 per liter. The last adjustment occurred 39 days ago.

The first to voice his criticisms was the president of the Chamber, Arthur Lira, who asked for the resignation of the president of the state-owned company José Mauro Ferreira Coelho. THE Sheet, the deputy said he “goes to the stick” to “review all prices” of fuel. He also said that he will work to tax the oil company’s profit.

Later, in an interview with Globo News, Lira defended Petrobras’ “taxation of absurd profits”. He did not elaborate on the proposal to tax gains, but other countries have discussed taxing the extraordinary profit of oil companies arising from the international increase in fuel prices.

Bolsonaro asked for the installation of a CPI (Parliamentary Commission of Inquiry) to investigate the directors of Petrobras.

“I just talked to Arthur Lira (PP-AL), he is currently meeting with party leaders. Our idea is to propose a CPI to investigate the president of Petrobras [José Mauro Ferreira Coelho]its directors and also the administrative and fiscal council”, declared Bolsonaro, during an interview with a network in Rio Grande do Norte.

This week, the National Congress approved a proposal that limits ICMS on fuel, energy, transport and telecommunications at 17% and 18%. Sponsored by Arthur Lira, the measure relied on the articulation of Pacheco to advance in the Senate, the legislative house closest to the states, which pointed to suffer billionaire impacts on state revenue.​

Also this Friday (17), one of Pacheco’s closest allies, Senator Alexandre Silveira (PSD-MG), presented a request for the summons of Minister Paulo Guedes and José Mauro Ferreira Coelho to explain yet another price increase fuels.

“On Monday, the government proposes to take money from health and education in states and municipalities, talking about reducing the price of fuel. This is to announce another increase in the price of fuel on Friday, to give money to a Petrobras shareholder” , wrote the senator on social media, who has been a critic of Guedes since the beginning of his term.

“This increase in fuel prices announced today is another spit in the face of Brazilian society. I have warned that the Minister of Economy no longer meets the minimum conditions to continue at the gas station, as he is totally disconnected from reality. There is no more credibility”.