Gasoline rises 3% and is above R$ 5 in the first week of 2023

The average price of regular gasoline rose 3.2% at Brazilian service stations in the first week of 2023, according to a survey released this Friday (6) by the ANP (National Agency of Petroleum, Natural Gas and Biofuels).

The average value per liter was R$ 5.12. That is, it was R$ 0.16 above the R$ 4.96 of last week, the last of 2022. This is the second consecutive increase in fuel prices.

According to the ANP, the average price of diesel oil increased by 2.6% in the first week of 2023, to R$ 6.41. It was at R$ 6.25 in the previous seven days.

The price of ethanol did not escape the increases either, rising 3.6%. It was calculated at BRL 4.01 – it was BRL 3.87 the previous week.

Fuels gave rise to one of the main discussions at the beginning of President Luiz Inácio Lula da Silva’s (PT) new term.

The reason was the prediction of the end of the exemption promoted by the Jair Bolsonaro (PL) government, which would run until December 31, 2022.

Shortly after taking office, on Sunday (1st), Lula signed an MP (provisional measure) that extended the tax cuts on fuel. The decision sought to avoid a great inflationary pressure right at the beginning of the PT government.

As a result, the exemption from federal PIS and Cofins taxes was extended until the end of February for gasoline (which will also be exempt from Cide during the period), ethanol, aviation kerosene and vehicular natural gas – in addition to naphtha.

The cut will remain valid until the end of the year for diesel, biodiesel and liquefied petroleum gas (LPG, cooking gas).

Even with the extension of the benefit, drivers complained about significant increases at stations in different regions of the country at the beginning of the week.

Faced with the situation, the president of Cade (Administrative Council for Economic Defense), Alexandre Cordeiro, determined on Wednesday (4) the opening of an investigation into the reports of readjustments.

In the request, based on newspaper articles that cite the increases, Cordeiro points out that, if proven, the situation could be a “competitive infringement of the collusive class, that is, similar to a cartel and, therefore, having the same harmful effects on competition” .

The readjustments would have occurred in the face of the expectation of a return to the collection of federal taxes, which was expected to happen in early 2023, but was overthrown by the PT government.

The measure adopted by Cade was not the only one regarding complaints this week. The secretary of Senacon (National Consumer Secretariat), Wadih Damous, said that he had notified fuel stations that raised prices at the beginning of the year.

Fecombustíveis, a federation that brings together 34 employers’ unions and around 42,000 gas stations in the country, said on Tuesday (3) that establishments “are free to define their selling prices, based on the cost of products purchased from their distributors”.

In the same statement, the entity said that “several factors” influence the formation of costs in distributors.

The federation cites, for example, the mixture of biofuels (anhydrous ethanol and biodiesel), the share of imported products and price differences in privatized refineries and Petrobras refineries.

“The market is free and competitive in all segments, and it is up to each distributor and retailer to decide their prices, according to their cost structures”, stated Fecombustíveis.

“This federation, however, understands that it is essential to keep society informed so that the resale is not held responsible for changes in the price that occur in other stages of the chain and that, many times, are only passed on by the gas stations”, he added.

The extension of the exemption on fuels will cost the federal government coffers R$ 25 billion in 2023.