Cade tells the Supreme Court that it will sue Petrobras for possible abuse of prices in refineries

The president of CADE (Administrative Council for Economic Defense), Alexandre Cordeiro de Macedo, sent a letter to the Minister of the Federal Supreme Court (STF) André Mendonça to inform that the body will ask Petrobras for new information before deciding to open a sanctioning process. for alleged violations of the economic order.

In the document, obtained by SheetMacedo says that CADE’s General Superintendence will send a letter to Petrobras this Friday (2nd), giving the company two weeks to present “detailed information on the impacts of Petrobras’ posture, specifically considering the Notice to the Market published at the end of July related to the formation of fuel prices”.

That month, the state-owned company approved the Directive for the Formation and Prices of Oil and Natural Gas Derivatives in the Internal Market, creating a new layer of decision within Petrobras by giving more power to the board of directors – the group that defines the company’s policies and with more government representatives.

Although the process at Cade takes into account possible infractions by Petrobras in the sale of fuel at refineries above the price of the competition, the STF minister wants to know if the new pricing policy has had any impact on price formation, especially for diesel.

The state-owned company’s new directive was approved shortly after the Minister of Mines and Energy, Adolfo Sachsida, took office. Sachsida is an ally of Bolsonaro and close to the president of Petrobras, Caio Paes de Andrade.

Paes de Andrade, former special secretary to Economy Minister Paulo Guedes, replaced General Joaquim Silva e Luna, who did not give in to President Jair Bolsonaro’s calls to control Petrobras prices and fully pass on the highs generated by the increase in oil prices, basic input in fuel production.

STF Minister André Mendonça -another former minister of the Bolsonaro government- is the rapporteur of a Direct Action of Unconstitutionality brought by the President of the Republic against the states (except Tocantins), which contest the definition of the new ICMS rates defined by law. .

The move was part of the Planalto Palace’s offensive to try to reduce the price of gasoline and diesel before the election period. Bolsonaro is in second place in the polls, behind former president Luiz Inácio Lula da Silva (PT).

In the action, Mendonça asked Cade for information on Petrobras’ price formation. The minister’s objective, however, is not to know whether the state-owned company violates the economic order, as evaluated by Cade, but to unravel the mechanism for setting the price of diesel – the target of dispute by the Planalto in the face of a sudden increase, according to the government, by a decision by Consefaz, the council that brings together the state finance secretariats.

The minister wants to assess whether there was a price practiced below or above the average by the states as a way of interfering with the level of ICMS collection, something that the Bolsonaro government considered to be a maneuver by the states.

In some states, the new rate (17%) represented a 50% cut in collection, as in Rio de Janeiro.

The law sanctioned by Bolsonaro also set a ceiling for ICMS rates on energy, transport and telecommunications. However, the president vetoed a device that sought to guarantee the recomposition of funds for health and education in the event of damage to these areas due to loss of revenue, something that is being questioned in the Supreme Court.

During the proceedings in Congress, a trigger was inserted that allows states to write off debts with the Union, if the measures lead to a drop of more than 5% in total ICMS collection.

The mechanism was criticized by the states, as they will hardly be activated, since revenues tend to grow more than that due to the increase in the prices of taxed goods.