On Wednesday (04/01), Administrative Council for Economic Defense (Cade) President Alexandre Macedo, ordered the creation of an inquiry to investigate the increase in fuel prices at gas stations throughout Brazil.
Competitive Infraction on the Eve of the Government Transition
In his order, Cade president suggests that the conduct practiced by the service stations could be classified as a “competitive infraction that is similar to a cartel and, therefore, having the same harmful effects on competition.” According to Macedo, the increases, “on the eve of the government’s transition period”, were “evident”.
Taxes
Federal taxes on gasoline, alcohol, diesel and cooking gas were suspended by the Jair Bolsonaro government in June 2022 – amid the complications of the Ukraine war and the pre-election period. The rule edited by Bolsonaro expired on 31 December, a Saturday. On the following Monday, 2 January, the government of Luiz Inácio Lula da Silva edited an MP restoring the tax exemption for gasoline and alcohol for 60 days, and for diesel and cooking gas until the end of the year. Despite that, some service stations and distributors raised prices at the turn of the year.
Justice and Public Security Ministry
In the last two days, Justice and Public Security Ministry notified eight entities representing gas stations in three states asking for explanations about the increase in the price of gasoline. There are five entities in Rio de Janeiro, two in São Paulo and one in Paraná – associations, federations and a union – all representatives of station owners or fuel distributors.
