Gas stations will be inspected to ensure a drop in prices, says minister

Petrobras announced a reduction of R$ 0.44 per liter in the average price of diesel for distributors, which will go from R$ 3.46 to R$ 3.02 and a reduction in the average price of gasoline from R$ 0.40 per liter liter, going from R$ 3.18 to R$ 2.78, an amount also paid by distributors.

The minister’s statement comes after the company established the end of the policy of linking fuel prices to variations in the international market, called International Parity Price (PPI).

“We will have the firm hand of the government so that the price reaches the pump. Brazilians have to benefit from this effort by President Lula’s government to promote and create a national fuel price policy that is fair to the Brazilian people,” said the minister in an interview with the program The Voice of Brazilyes Brazil Communication Company (EBC).

He informed that he had meetings with the ANP to deal with the inspection. “We are not going to compromise. Those who, by chance, try to capture this conquest of Brazilian men and women who are cheaper fuels, will be punished with the rigor of the law.”

On Tuesday (16), Petrobras announced a new commercial strategy for defining diesel, gasoline and gas prices, approved by the company’s executive board. The new strategy does away with the International Parity Price (PPI), the pricing policy that, since 2016, linked the average fuel prices that Petrobras sells to distributors to variations in products on the international market, among other factors, to protect the company regarding the operational risks of the sector.

Critic of the PPI, Alexandre Silveira said that the policy was a barrier for Petrobras to become more competitive and fulfill the social role provided for by law. “It made no sense and tied the largest oil company in Brazil to a reference price that often prevented Petrobras from being competitive, even within Brazil. It has to, in addition to being a stable company, have a natural profit to become increasingly modern, competitive and perennial, it has to fulfill its social role”.