Lula wants to start Petrobras’ policy change for cooking gas

Aiming at low income, former president Luiz Inácio Lula da Silva (PT) is already drawing up plans to bring the price of gas cylinders to the level of R$ 70 in the first six months of 2023 if he wins the elections.

The idea is to keep the resources given to the population through Auxílio Gás (paid directly to the least assisted covered by Auxílio Brasil) and, on the other hand, even use resources from the National Treasury to subsidize a price reduction by Petrobras.

According to senator Jean Paul Prates (PT-RN), who works on the elaboration of the government plan in the area of ​​oil and gas, this will be the first step of the PT team to completely modify the oil price policy and its derivatives, the called PPI (International Parity Price).

“It has to be a hybrid model, which mixes the international reference price and also the local cost structure”, he told Sheet. “We cannot be held hostage by the PPI.”

One idea is, for example, to make a weighted average between the price of the imported product and that produced in Brazil. This formula would govern all petroleum derivatives. To implement it, according to the senator, it will not be necessary to modify any internal rules of Petrobras.

With the new guideline, it would be possible to create a routine of “correcting” prices – up or down – once a month, for example.

Prates believes that this plan would not mean an intervention in the company as Bolsonaro did. “There will be nothing forced,” he said. “If the plan taken by the government is approved and this does not cause damage to the company, we will try to do it.”

The senator explained that the PPI law provides for a settlement of accounts between the Union and Petrobras whenever government arrangements cause damage to the company’s cash.

“But that doesn’t mean that a readjustment can’t be smaller if the company decides, by its own evaluation.”

Prates believes that the government, as the majority shareholder of Petrobras, should have the power to approve projects of a social nature whenever it deems it necessary.

According to Deyvid Bacelar, president of FUP (Frente Única dos Petroleiros), cooking gas represents less than 5% of Petrobras’ profit, another reason that makes it easier to start the transition in the price policy for the product.

“Until demand is adjusted, you could use a weighted average between what is imported and what is produced in the country,” says Bacelar, who presented ideas to Lula’s campaign.

In the case of cooking gas, called LPG, the cylinder cost more than R$ 150, in March this year, due to high Petrobras to pass on increases resulting from the war between Russia and Ukraine. Now, the average price in the country is R$ 112.19, according to a monthly survey by the ANP (National Petroleum Agency) carried out in July.

The readjustment marked the apex of a price rise curve that led thousands of families to switch from gas to charcoal or firewood in the kitchen.

Lula’s plan, if elected, is to inject more public money or even forgo Petrobras dividends to restore supplies at “reasonable prices”, according to the senator.

“In a maximum of six months, the cylinder will have to go back to R$ 65, R$ 70”, said Prates.

Today, families that are part of CadÚnico (Cadastro Único) with a monthly per capita income of less than half a minimum wage (R$ 606) are entitled to the Gas Aid. Households with at least one member who receives the BPC (Benefício de Prestação Continuada) are also covered.

The proposal is that this program be permanent and the promise can help Lula in the dispute against Bolsonaro who, in order to get votes among the low-income, managed to increase Auxílio Brasil to R$600 until December this year.

Lula still has an advantage against Bolsonaro, according to polls. Datafolha poll carried out at the national level in June this year shows that PT would be elected in the first round, with 53% of valid votes. To win in the first round, you must get half of the valid votes plus one.