Gasoline price drops another 2.5% and approaches R$ 5 per liter

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The average price of gasoline dropped another 2.5% at Brazilian stations last week and reached the lowest level since August 2020, according to a survey by the ANP (Agência Nacional do Petróleo, Gás e Biocombustíveis).

It was the 11th consecutive week of decline, driven by tax cuts and reductions in Petrobras refineries. Last week, the average price of fuel was R$ 5.04 per liter, R$ 0.09 less than the previous week.

Since the peak of R$ 7.39 reached in the penultimate week of June, the accumulated drop is 31.7%, or R$ 2.35 per liter. The strong reduction last week was impacted by the 7% cut promoted by Petrobras in the sale price at its refineries.

Between July and August, the price of gasoline was reduced four times at Petrobras refineries, with an accumulated drop of 19.2%, in a move that has been criticized by the opposition as a strategy to help in the campaign for the reelection of President Jair Bolsonaro (PL ).

This week, the cheapest gasoline in the country was found by the ANP in Sumaré (SP), at R$ 4.35 per liter. The most expensive in the survey was in Maceió (AL), at R$ 7.09 per liter. The fuel can already be found for less than R$5 per liter in 20 states and the Federal District.

According to the ANP survey, the price of diesel was practically stable last week, when it cost, on average, R$ 6.88 per liter. Less impacted by tax cuts, the product accumulates a drop of 9.1%, or R$ 0.69 per liter, since the peak of R$ 7.57 observed at the end of June.

The price of hydrated ethanol fell 4.8% in the week, to R$ 3.53 per litre, informed the ANP. The fuel was found at less than R$3 per liter in three states: Goiás, Mato Grosso and São Paulo. The week before, the list had only the last two.

The government is counting on falling fuel prices to reverse damage to its image caused by the escalating inflation at the beginning of the year. Petrobras even revised its disclosure policy, issuing announcements about price cuts for products that were not disclosed before.

Appointed to head Petrobras with the mission of holding prices down, Caio Paes de Andrade has had his work made easier by the drop in international prices, in response to fears of global recession and new lockdowns in China.

Even with the series of readjustments announced in recent weeks, the price of Brazilian gasoline has been above import parity, according to a calculation by Abicom (Brazilian Association of Fuel Importers). At the opening of the market on Monday (12), for example, the average price of a liter of fuel in the country’s refineries was R$ 0.19 above the reference price for importing the product.

For the market, Petrobras has adopted the strategy of carrying out small and more frequent readjustments to generate positive facts for Bolsonaro’s campaign. The state-owned company informs that there is no defined periodicity for the adjustments of diesel and gasoline.

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