Brazil extends diesel subsidy to contain impacts of war

Dthus, is maintained the subsidy of 2.12 reais per liter of diesel (about 0.35 euros in the current exchange rate), for another 30 days, to try to contain the transfer of the international oil discharge to the domestic market.

Brazil imports 25% of the diesel consumed internally and, since May, the Government has edited Provisional Measures to subsidize the price of fuels in the country, and tax waivers already exceed 2.1 billion reais (354.41 million euros).

On another front, to contain abusive practices in the sector, a Provisional Measure was announced that amends the Brazilian Consumer Protection Code “to establish specific fines for infringements committed by fuel chain agents”.

The figures range from R$ 20 000 (about R$ 3.37 000) to R$ 500 million (about EUR 84.38 million).

During a press conference, Justice and Public Security Minister Wellington César Lima said that “it is necessary to distinguish between price freedom and indiscriminate price abuse”, explaining that the State is prepared to repress abusive conduct on the market.

"The severity of this fine will only affect cases characterized as abuse. We have 1.300% of the gross profit margin. It would be absurd to close your eyes to this evidence ", declared.

Along the same lines, the National Consumer Secretary (Senacon), Ricardo Morishita, said ‘to be abusive to increase profit margins’ at a time when the Federal Government makes an ‘ effort’ to hold the price rise due to the effects of the war on the Middle East.

Another measure announced today is the work of a task force, which involves several regulatory authorities, which have intensified inspections at supply stations, and distributors from the complaint of consumers and control bodies.

For example, the National Agency for Oil, Natural Gas and Biofuels (ANP) has determined in recent days fines to distributors which, in addition, exceed 700 million reais, about EUR 118.13 million.