October 26, 2021

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diesel in cars and benefit from airlines;  Check Turtle MP Fuel - 09/21/2021 - Market

diesel in cars and benefit from airlines; Check Turtle MP Fuel – 09/21/2021 – Market

MP (Provisional Action) 1,063, which issues notations for Buy ethanol directly from the factory Or gasoline from other brands that have already won 73 room modifications, some of which are out of the topic of the Executive’s proposal, the so-called turtles.

For the sector, the flurry of proposals raises concern about taking away the powers of Congress belonging to the ANP (National Agency for Petroleum, Gas and Biofuels), as happened in Privatization of Eletrobras MP, which went beyond planning by implementing mini sectoral reforms.

At MP Fuels, the Turtles deal with issues such as the release of the light diesel vehicle industry, authorization of self-service pumps at service stations, delivery services in the sale of gasoline and benefits to specific sectors, such as aviation.

Some of the amendment topics have already been discussed in Congress by other bills, such as the implementation of gas purchase support For low-income families or create a fuel price stabilization fund.

The manufacture of light diesel vehicles has been banned in the country since the oil shocks of the 1970s, and is the subject of amendments introduced by Federal Rep. Kim Katagoire (DEM-SP) and Adriana Ventura (Novo-SP), arguing it could help the Reduce fuel prices.

The MP defends “many countries use diesel for passenger vehicles, including on environmental issues.” Moreover, licensing the use of diesel could make the fuel cheaper, and alleviate the current inflation crisis.

The fuel sector opposes this idea, claiming that Brazil is still a importer of diesel oil and that the popularization of vehicles with this fuel could have an impact on the trade balance. In addition, due to its importance in the transportation of goods, the tax burden of diesel is much lower than that of gasoline.

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In other modifications, Kataguiri and Ventura are also proposing to allow stations to have automated self-service pumps. argue that, No cost to attendeesPrices could be lower.

Ventura asks: “In supermarkets, banks, restaurants, cinemas, airlines, etc., self-service is possible. So why is it any different with the fuel sector?” “Brazil is decades behind in the region. Self-service pumps are used in all developed countries.”

Permission to deliver fuel, subject which is currently being discussed in the National Ports Agency, Defended by MP Felipe Rigoni (PSB-ES). For now, the agency is monitoring operations in the testing phase, before giving a final opinion on the model.

“The expansion of fuel-related business operations is closely linked to the increase in competitiveness in the sector,” says the MP, defending that the measure will ensure “an innovative service to the consumer.”

Senator Chico Rodrigues (DEM-RR) is calling for a federal tax exemption for the purchase of fuel by airlines, claiming the sector is facing the “worst crisis in history” caused by Through low demand during the epidemic.

“According to federal government estimates, once the stimulus is adopted, approximately R$250 million annually will not be collected from federal contributions,” he says. However, this action is urgent and necessary to prevent further dismantling of the sector related to the economy and society.”

Agricultural aviation is also the subject of an amendment, by Representative Jeronimo Jurgen (PP-RS), who wants the sector to have the right to buy ethanol directly from factories, arguing that the measure “has implications for the final cost of national agricultural production”.

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Most of the amendments address tax issues related to the direct sale of ethanol, with an emphasis on collecting federal taxes on producers, in a form called monophasia, which was already being discussed by Congress.

Representative Jose Neto (Podemos-GO) is going further and trying to legislate on state taxes, proposing Standardization of ICMS rates On fuel at 17% for gasoline and 10% for diesel and ethanol, with a two-year period to meet the target.

This issue is the subject of differences between the federal and state governments, which have an important focus on collection and claim to favor discussing the tax burden on the sector in the context of tax reform.

Every time there is a bill and a temporary measure, many people take the opportunity to put the turtle, it presents a risk whenever the bill is passed through legislation,” says Downstream Director of IBP (Institut della Petroleum Brazil), Valeria Lima.

Although she says that all proposals should be pursued, she sees little chance for the development of those least interested in the subject of the deputy. The IBP itself is sponsoring amendments to the text, but is trying to nullify the possibility that stations will buy fuel from other brands.

The institute claims that in addition to being a contractual relationship between stations and distributors, the decree regulating the procedure does not solve Consumer protection issues resulting from the offer, such as ensuring that the consumer is informed of the product they are purchasing.

In addition, it does not address an issue considered fundamental to the sector: the separation of storage tanks by fuel source. “The consumer enters into a service bearing such a mark, how will you know which product is in the pump?” asks.

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On Monday (13), President Jair Bolsonaro issued a new temporary measure extending the validity of the MP’s fuel proposals, which gave 90 days for states to regulate the tax portion and the National Ports Agency to set the rules.

The new MP, No. 1069, came along with a decree setting some standards for the sale of fuels from other brands, and again, the market saw it as a violation of the regulator’s role.

“Without the necessary technical deepening of the issue and the implications for the sector, MP 1069/21 anticipates the process of reviewing the regulatory framework for resale, carried out by the National Ports Agency, the competent authority for regulating the fuel market in the country,” said the IBP.