The average price of regular gasoline in Brazil dropped 3.6% this week, according to a survey released this Friday (1st) by the ANP (National Agency for Petroleum, Natural Gas and Biofuels).
The value of a liter of fuel dropped to R$7,127 at gas stations across the country. In practice, this means a low of around BRL 0.26 compared to last week. Gasoline had reached a record of R$ 7,390 at the time.
Diesel oil, on the other hand, had relative stability. The liter was sold, on average, for R$ 7,554 this week.
The data points to a slight drop of 0.2% compared to last week, when fuel hit a record R$7,568. This means that diesel is still more expensive than gasoline.
The data comes in the wake of measures that seek to reduce fuel prices on the eve of the elections. A law that cuts federal and state taxes on gasoline was signed into law by President Jair Bolsonaro (PL) last week.
Federal taxes were zeroed, and ICMS (state tax) started to have limited rates. However, some states questioned the measure.
The federal government’s actions represent an attempt to curb inflation close to elections and thus improve Bolsonaro’s popularity. He appears behind former president Luiz Inácio Lula da Silva (PT) in polls.
The fear, according to analysts, is that measures that result in loss of revenue will cause a kind of fiscal bomb. That could put pressure on inflation further.
The shortage of items such as fuel is seen by members of Bolsonaro’s campaign as the main obstacle to reelection.
On Monday (27), São Paulo and Goiás announced a reduction in ICMS rates on gasoline.
In São Paulo, gasoline dropped around 4% this week. The value fell from R$ 6,974 to R$ 6,697. The approximate drop was R$ 0.28.
In Goiás, gasoline fell 5.3% this week. The value went from R$ 7,478 to R$ 7,078. The retraction was BRL 0.40.
Other federation units, such as Minas Gerais, Rio de Janeiro and Santa Catarina, also confirmed cuts in ICMS rates this Friday, which may have an impact in the coming days.
As a Folha report showed, while states were still trying to reverse the tax reduction in court, gas stations were already starting to receive gasoline this week with a discount on the portion of federal taxes.
According to the ANP, the average price of ethanol also dropped. The value of the liter this week was R$ 4,723. The mark represents a decrease of 3.1% in relation to the previous survey (R$ 4,873).
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