Gasoline Prices Soar in Brazil and Threatens the Economy

Petrobras announces a 19% increase; Cooking gas rises 16%, and diesel, 25% as a result of the war in Ukraine on oil

Rio de Janeiro and Rio de Janeiro

The mega-increase in fuel prices announced this Thursday (10) by Petrobras and its effect on transport costs threatens to throw the economy into a cycle of public debt, high dollar and food.

The unusual proportion readjustment – ​​18.8% for gasoline, 16.1% for cooking gas and 24.9% for diesel – was caused by the rise in oil prices in the face of the war in Ukraine and the international boycott of Russia.

The gasoline sold by Petrobras makes up 73% of the fuel sold at the pump, which leaves an impact of BRL 0.44 per liter for those who supply it and catapults the national average price to around BRL 7 for the first time.

With this, the projection of consumer inflation measured by the IPCA this year passes, according to economists, to 7.5% – there are banks that predict 8.5%. In the best case scenario, it is 1.5 percentage points above the current estimate.

Minister Paulo Guedes (Economy) ruled out changing Petrobras' pricing policy, but admitted that the government is considering subsidizing diesel through the National Treasury if the war continues.

Translated by Kiratiana Freelon

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