The political offensive against the fuel price readjustment announced by Petrobras has the support of leaders of the central parties. But the tendency is for the package to be softened in the event of a change of direction in the management of the state-owned company or a quick change of command of the company.
The threats of retaliation against Petrobras came to light shortly after the confirmation of the increase in fuel prices, this Friday (17), and came from President Jair Bolsonaro (PL), and his allies, such as the Speaker of the Chamber, Arthur Lira (PP-AL), and the ministers.
Leaders of governing and independent parties are aligned with Lira, who called a meeting for this Monday (20). The objective is to discuss ideas presented by him in response to the adjustment.
The list includes proposals to raise Petrobras’ profit tax, discuss the state-owned company’s pricing policy and create a CPI to investigate possible abuses by the company’s current management in the face of escalating fuel prices.
“I share the same indignation against this abusive price adjustment”, said the leader of União Brasil, Elmar Nascimento (BA). Members of PL, PP and Republicans also say that the acronyms must support the package. These parties are among the six largest in the Chamber.
The PT, one of the largest groups in the House, is still debating what strategy to adopt. The party’s president, Gleisi Hoffmann, said that the offensive has a political character.
“It’s the government’s role, not Lira’s. Bolsonaro’s pen is enough to solve it. […] If Lira had a commitment to the people, he would have sent a proposal like this before, but he preferred to change the ICMS of the states [proposta aprovada pelo Congresso que cria um teto para o imposto estadual sobre combustíveis]. Now, 100 days before the elections, despair has hit”, declared the PT.
In addition to the package mentioned by Lira, leaders of the Chamber should also debate the idea of taxing oil exports. The funds collected from the tax, which is currently not collected, would be used as subsidies to reduce the price of diesel, according to one of the authors of the proposal, Deputy Danilo Forte (União-CE).
“Petrobras today is exempt and society does not benefit in any way from this export. […] I am in favor of a structuring tax, because a temporary tax makes it very fragile”, defended the deputy, who was rapporteur for the ICMS ceiling proposal.
Another instrument of pressure on Petrobras is the eventual sanction of Cade (Administrative Council for Economic Defense) in case of proven abuse of dominant power. The company holds the largest share of the fuel refining market.
The offensive intensified this Friday in a joint reaction by Bolsonaro and allies after the announcement of the readjustment. The rise in prices irritated the president, who had been asking the state-owned company to postpone the decision.
The political class, which was already complaining about Petrobras’ pricing policy, began to put even more pressure on José Mauro Ferreira Coelho, president of the state-owned company, to resign. That would pave the way for a quicker change at the helm of the company, but he has resisted.
Behind the scenes, Chamber leaders say that, in the event of a resignation or a change in the company’s command, the retaliation package should be softened. But they are unlikely to shelve all the measures suggested by Lira.
The discussion of Petrobras’ pricing policy, which took effect in 2016, is an item that should move forward. Deputies recall that, according to specialists, there is still a lag in the value of the products in relation to international quotations. Therefore, there will still be pressure for new adjustments.
Since last year, Lira has already questioned the price model adopted by the state-owned company.
But, fearing electoral attrition, parliamentarians want to seek a short-term solution. Therefore, they are willing to discuss changes in state taxation.
The increase in taxes, however, has legal restrictions and can only occur after the election. In addition, there are doubts as to whether Brazilian legislation would allow the creation of a tax rate on the specific profit of a sector.
From Lira’s list, the creation of a CPI by the state-owned company is the one with the greatest chance of losing traction after political discussions. The idea has the support of Bolsonaro, who has adopted the strategy of attacking Petrobras amid criticism of rising prices.
Leaders aligned with the president assess that the CPI may result in more wear and tear for the Planalto Palace. Members of the opposition, including the PT, have already declared their support for the investigation.
A CPI has the power to determine that investigations are carried out, depositions are taken, information is requested from public bodies and even the breach of telephone, banking, tax and telematic confidentiality of investigated persons.
Lira’s ally, Forte is also critical of the idea. “Price policy is not an issue for a CPI. Such a commission will not resolve this issue. This is more of a snatch than something to be investigated by a CPI.”
Understand the threats against Petrobras
Petrobras aroused the ire of the political class by announcing, on Friday (17), a new 5.2% increase in gasoline, after 99 days without an increase in fuel.
Already diesel had a high of 14.2%, after 39 days of frozen prices.
In the days leading up to the announcement, the company was already suffering attacks and pressure to hold down fuel prices.
After having their appeals ignored, President Jair Bolsonaro, the top of Congress and other political actors reacted forcefully.
Jair Bolsonaro, President of the Republic
He called the adjustment “betrayal to the Brazilian people” and defended the creation of a CPI (Parliamentary Commission of Inquiry) to investigate the president of Petrobras, José Mauro Coelho, and the other executives who make up the company’s management and board of directors. .
A CPI has the power to determine that investigations are carried out, depositions are taken, information is requested from public bodies and even the breach of telephone, banking, tax and telematic confidentiality of investigated persons.
Bolsonaro also said that the CPI would help “put an end” to the impasse involving fuels.
“The most important thing is to change the president and directors of Petrobras. We hope to be able to do that in the coming days,” he said.
The president himself also admitted that, with the exchange, the expectation is to put someone who can “not grant this readjustment”.
Arthur Lira, president of the Chamber of Deputies
He publicly called for the resignation of the president of Petrobras, who was already fired by Bolsonaro in early May, but still occupies the chair due to the operational procedures for the approval of his successor at the shareholders’ meeting.
José Mauro Coelho’s resignation, however, could shorten this process. He also accused Coelho of being “slutty” and said that at Sheet that “goes to the stick” to “review everything from prices”. He also proposed raising Petrobras’ profit tax.
Alexandre Cordeiro, president of CADE
He signaled that Petrobras may suffer sanctions from the competition defense body because of the high prices. Cordeiro, who is linked to Minister Ciro Nogueira (Casa Civil), said the company “doesn’t seem too concerned about its image.”
According to him, the high concentration of the oil and gas market in the hands of Petrobras may lead Cade to curb “abuse of a dominant position”.
André Mendonça, Minister of the STF
Appointed to the Supreme Court by Bolsonaro, Minister André Mendonça gave a period of five days for Petrobras to provide “detailed information” about the criteria adopted by the company in its pricing policy in the last 60 months.
According to the minister, Petrobras, as a mixed-capital company of the Union, must follow principles such as transparency and meet “the imperatives of national security, the relevant collective interest and its social function”.
The argument of Petrobras’ social role has been used by Bolsonaro and political allies in defense of a containment of readjustments by the company.
THE MEASURES THAT ARE ON THE TABLE
- CPI to investigate the president, directors and members of the Petrobras board of directors
- Raise taxation on the profits of oil companies such as Petrobras
- Forecast so that funds obtained with profit surcharge can be spent outside the ceiling
- Discussion of a legislative proposal to review the company’s pricing policy (which determines alignment with international prices)
- Possible administrative sanctions to the company for abuse of dominant power in granting readjustments
- Sanction of the bill that creates a ceiling for ICMS, state tax, fuel, energy, transport and telecommunications rates, in order to neutralize part of the increase
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