Gas inflation passes 20% in 12 months and puts pressure on families and traders

The rise in cooking gas is already more than twice the general inflation and leads the list of housing expenses in the last 12 months. Piped gas rose 26.29%, and bottled gas, 21.82%. Inflation for the period was 10.07%.

The price of gas depends on factors such as the international price of oil, federal and state interest rates and the profit of distributors. According to Carla Beni Menezes de Aguiar, an economics professor at the MBAs at FGV (Fundação Getulio Vargas), the most important factor for the inflation of cooking gas was the international price.

Although most of the gas consumed in Brazil is produced by Petrobras, the Brazilian government adopts a policy of import parity for all fuels. Based on this policy, the price of fuel in Brazil, including gas, starts to follow the international value of oil.

According to Sergio Bandeira de Mello, president of Sindigás (Union of LPG Distributing Companies), the price of other fuels also impacts gas, because of distribution expenses. In the last 12 months, gasoline had an accumulated increase of 5.64%, and diesel, of 61.98%.

Consumers have felt the impact of these increases. Luiz Antônio Ramos, 56, owns a cafeteria in Pirassununga, in the interior of São Paulo. He consumes about 12 cylinders of gas a month and says that since the beginning of 2021, spending has almost doubled.

In October of last year, he turned the month with a negative balance and had to pass on the increase in gas prices to customers.

Maria Lenice, 42, owner of a lunch box delivery in Leme, in the interior of São Paulo, also had to make adjustments in her business. She said that she didn’t pass the price on to the warm ones so as not to lose customers, but the profit margin decreased a lot.

As it held down prices, the number of customers even increased, but they had to stop selling lunchboxes at night, when demand is lower.

Traders also noted the influence of gas prices on household spending. The solution found by Luiz was to look for promotions at the supermarket to balance the budget. “If you can save R$60 on a purchase, that already helps to cover the increase in gas.”

According to the FGV economist, it is difficult to specify what will happen in the coming months. The international scenario is one of deflation and if this trend continues, the price of gas in Brazil will also tend to decrease.

She says that, on the national scene, there is not much that can be done in the short term. In recent months, both the federal and state governments have announced a reduction in ICMS rates for fuel, but the beginning of the electoral period prevents further reductions.

Cooking with an Air Fryer or a gas stove?

Despite the increase in gas prices and the reduction in electric energy, data from Sindigás indicate that the stove is still more economical than electric utensils. According to the union, even at times when electricity prices are lower, replacing a gas stove with an Air Fryer can be 79% more expensive to cook rice. At peak times this difference can be more than 300%.

Aguiar gives tips on how to save using the gas stove:

• Give preference to the pressure cooker, which cooks food more quickly than the conventional cooker

• When using the oven, avoid opening the door to check the food.

• Plan your meals — cooking just once for a few days can significantly reduce your gas bill

• Keep the stove clean: When the stove tops are clogged or greasy, the time needed to cook the food increases and this can interfere with gas expenses — yellow or orange flames can indicate that your stove is in need of maintenance

Impact on the pockets of the poorest

For the economist, the poor are the most affected by this increase. In some states, the value of a gas cylinder is equivalent to 10% of the minimum wage, the highest percentage since 2007, she says.

A study released by Sheet in April showed that gas consumes up to 22% of the budget of basic services of the poorest, while for the richest, this figure is 13%.

Since the beginning of the year, the government has paid the Gas Valley for the poorest families. In August, the value is R$ 110.

Families can receive the Gas Valley:

• Beneficiaries of Auxílio Brasil or BPC (Benefício de Prestação Continuada) who have their data updated in CadÚnico

• Families with monthly income per family member less than or equal to half the minimum wage, R$ 606 this year

Women who are heads of families or who have been victims of domestic violence have priority to receive assistance.