Opinion – Vinicius Torres Freire: From Lula to Bolsonaro, politics wants to tax gasoline, give money to the rich and break Petrobras

The price of soybean oil has increased by 114% since 2020 in Brazil. The kilo of beef muscle, 45%. Soybeans and beef are products listed on the international market, as fuels. Since 2020, gasoline has increased by 45%. Diesel, 47%.

The food increases seem to cause less revolt than those of Petrobras, which aroused demagogic, ignorant and opportunistic political reactions, which in any case do nothing to refresh the lives of the little people.

The gang, like Jair Bolsonaro, would like to price fuel, which is nonsense in the medium term (lack of investment, among other problems) and even in the short term. Diesel may be lacking, for example, with an explosion in prices, as seen in 2018, in the truck drivers’ strike, supported by Bolsonaro. Tables and general subsidies give money to the rich, by the way.

Politicians of all stripes got together with the raises. They tapped about Bolsonaro, about the oil company’s shareholders, about privatizations, the usual conversation: Lula, PT, Marcelo Freixo, ex-PSOL, sometimes PSB, Guilherme Boulos, always PSOL, Renan Calheiros (MDB), Ciro Gomes (PDT) , Arthur Lira of the PP, a major accomplice of Bolsonaro.

Brazilians earn in reais and pay for gasoline and diesel in dollars (as in the case of soybeans, cattle, etc.), the group said. The increases fill the pockets of Petrobras shareholders (it’s true, as well as the government, the oil company’s biggest partner). “Slap in the face” of Brazilians, “true owners of the company”, said Lira.

Brazil sells more oil than it buys abroad, but its refineries are not capable of refining, producing, all the diesel and all the gasoline that the country consumes. How much they are capable of refining is a complicated question, for reasons that are left for another text. In 2021, the country imported about 25% of the diesel it consumed.

If the Brazilian price is constantly lower than the international price, diesel will not be imported, which may be lacking. It was the recent risk. The country imported fuel even in PT years, although in fact less. In fact, the relationship between the price of diesel and the value of the minimum wage is now the same in 2022 as in 2008-09 (Lula 2 government). The minimum bought more diesel between 2012 and 2018, governments Dilma Rousseff and Michel Temer.

If the government finances part of diesel and gasoline, it will subsidize everyone who consumes these fuels, directly or indirectly, for rich and poor. The rich earn twice, moreover, because the government needs to make even more public debt to pay for this account, paying horrible interest, which goes into the pockets of the rich, who have the money to lend to the government.

Why does the left advocate this anti-economic and anti-social nonsense?

Petrobras and its shareholders could afford the loss. That is, selling fuel at a lower price than on the international market would be a disguised and targeted tax. Thus, the company would have less money to invest and produce. With worse financial results, it would pay higher interest to finance itself, etc., which we saw from 2014 onwards. Under the threat of tariffs, new companies would not enter the market to expand refineries, for example.

The government could then pay for the Petrobras hole, money it doesn’t even have (because it has a deficit). Because? There is no money for day care, SUS, science, infrastructure or minimum income.

Yes, the poor need money to face the even greater hardship of this shortage (food, housing, bottles, etc.). Messing with prices will wreck the fuel business, private or state, prevent the emergence of efficient energy alternatives, subsidize a polluting and decaying fuel. And it will not improve the situation of the poor.