High gasoline prices make Brazilians rethink car use

the rush of prices fuel consumption, intensified by the effects of the war in Ukraine, is making Brazilians rethink their car use.

How tight budget, part of the population decided to leave the car parked in the garage for longer. Long leisure trips have become scarcer in recent months.

In an attempt to save money, migrating to public transport, cycling or even skateboarding, when possible, is also an option that has become part of the routine.

Lawyer Marcos Barbosa, 50, is part of the group that decided to leave the car in the garage for longer due to increases in gasoline.

Now, the car is only taken out of the house in situations of greater need, such as shopping trips at the supermarket or at the fair.

The São Paulo resident also reduced visits to family members in the municipality of Casa Branca (about 240 km from the capital of São Paulo).

The trips, which were previously made every 15 or 30 days, started to occur, on average, every three months.

Barbosa works from home. But when there is a need to go out for work during the week, he tries to use public transport.

“I have a car, but I’m using it as little as possible,” he says. “My biggest concern is with the collective: such a strong increase in fuel is devastating”, he evaluates.

Petrobras’ pricing policy takes into account oil prices on the international market. With the tension created after Russia invaded Ukraine, the price of the commodity had soared, putting pressure on fuels in Brazil.

Faced with the situation, the state-owned company announced on March 10 a mega-increase in refineries. Gasoline rose 18.8%, diesel increased 24.9%, and cooking gas rose 16.1%. The increase has already impacted prices at gas stations and gas resellers.

The mega-increase came after items had already hit strong highs during the pandemic. In 2021 alone, gasoline inflation for the final consumer soared by 47.49%, according to IPCA data (Broad Consumer Price Index). The item accounted for the greatest impact on the IPCA in the period.

Changes even at work

Those who depend on gasoline to work are even more pressured by the surge. Ricardo dos Santos Anunciação, 38, lived this reality.

Until February, the resident of Taboão da Serra, in Greater São Paulo, was divided between his job as an app driver and working at a gym — he studies physical education.

With the cost of gasoline, Anunciação decided to abandon the wheel.

“The main source of income came from working as a driver. I liked the street a lot, but it became unfeasible. The margin has decreased a lot in recent times”, laments the professional, who rented a car to work.

Anunciação acted as a driver since 2016. Since then, costs have practically doubled, he says.

The rise in gasoline also affects the routine of Fabiana Cherubini, 46, who works as a bailiff. Like her colleagues, the resident of Porto Alegre (RS) uses her own car to travel from work.

The problem, according to her, is that the compensation amount paid to the category was outdated and can no longer cover fuel expenses.

“I fill up the car’s tank every week. A couple of years ago, I paid about R$100, a little more. Now, the bill is over R$300”, he says.

“We have to pay money from our own salary”, he adds.

The art history professor Gabriel Costa, 27, was not immune to the impacts of the famine either. His family had to readapt the use of the car for leisure and work.

“This affects everyday life. For example: I started going to a gym closer to home. Instead of using the car, I go there by skateboard”, says the resident of Anápolis (about 60 km from Goiânia).

The attempt to save doesn’t stop there. “With gas more expensive, my mother, who is also a teacher, asked for a transfer to work at a school closer to home”, says the young man.

Costa still regrets that fares for rides on transport apps have gotten higher amid the advance of fuels. He uses the platforms to go to work.

“At the end of last year, I paid R$ 11, R$ 12 or R$ 13, on average, to go to work. Today, the value is between R$ 19 and R$ 21”, he says.

Risk of ripple effect

After this month’s fuel mega-rise, economists are projecting higher inflation for 2022.

In addition to the direct effects for the consumer with more expensive gasoline, there is a prospect of indirect impacts due to the readjustment of diesel oil, points out economist Matheus Peçanha, a researcher at FGV Ibre (Brazilian Institute of Economics of Fundação Getulio Vargas).

Diesel is used in trucks and buses, responsible for transporting cargo and passengers.

“Cost inflation had even stabilized, but now we should have her return”, says Peçanha.

“Diesel has great power to disseminate increases. It is the fuel for freight, mechanized agriculture and public transport. It can generate a cascading effect”, adds the researcher, who projects IPCA of 7.5% by the end of 2022.

The surge in items such as gasoline and diesel causes a headache for President Jair Bolsonaro (PL), who is expected to seek re-election this year and fears the impacts of the electorate’s loss of purchasing power.

Recently, Bolsonaro criticized Petrobras and defended changes in the state-owned company’s pricing policy. The president even demanded a reduction in fuel prices after oil showed signs of truce in the international market.

The company, in turn, released this Friday (18) a statement in defense of its pricing policy. Petrobras indicated that the high volatility in the foreign market prevents adjustments at this time.

“Petrobras is sensitive to the impacts of prices on society and maintains daily monitoring of the market at this challenging and highly volatile moment, not being able to anticipate decisions on maintenance or price adjustments”, says the text.
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