Start End of poll: majority prefers Petrobras to build more refineries to lower fuel prices

End of poll: majority prefers Petrobras to build more refineries to lower fuel prices

May 9, 2022 9:21 am to 09:21 am
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poll points out that petrobras should build more refineries to lower fuel prices
If the price of oil increases abroad, Petrobras will increase here too | Image: EBC via Google

Among the least efficient chosen in the vote, the end of the PPI and self-regulation of the market would not be good alternatives for the country

Fuel prices are high in Brazil for several reasons. The main one is Petrobras' policy of stipulating the value of a barrel of oil at the international price. In other words, if the price of raw materials increases abroad, the state-owned company also increases here, directly affecting the pump at gas and diesel stations. One of the recent reasons for this escalation in values has been the war in Ukraine, as Russia that is the second largest exporting country and third largest producer of oil on the planet, accounting for about 12% of global supply, has been suffering economic sanctions.

In a presidential election year, the pre-candidates do not fail to criticize Petrobras, even though the Union to benefit from the state-owned company's gains. But, in addition to trying to change the policy of international parity in the price of oil, what would be the other alternative for fuel prices in Brazil to decrease? To know popular opinion, the Click Oil and Gas portal conducted a poll on Twitter.

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The opinion poll pointed out that building more refineries would be the main alternative to lower fuel prices. The option dragged in 35% of votes, closely followed by “cut taxes” which had 32%. “Extinguish the Investment Partnerships Program (PPI)” had just over 21% and “Self-Regulation of the Market” was pointed out by 10% of the voters.

Poll promoted by CPG on twitter

Building more refineries would cause refining value to drop by more than 30%

Pointed out by the majority of people who participated in the survey of the CPG portal, the construction of more refineries would make the value of oil refining in domestic units fall 33%, being cheaper than abroad.

Currently, Petrobras has 12 refineries in operation in Brazil that produce gasoline, diesel, aviation kerosene (QAV), fuel oil, among other petroleum products every day. The average is 1.8 million barrels produced per day.

Brazilian oil is of the very valuable type. If it were completely refined here in the country, there would be no need to pay so much for import costs, nor would we be hostage to fluctuations in the dollar.

In order to process Brazilian oil, oil refineries Abreu and Lima, in the city of Cabo de Santo Agostinho in Pernambuco, and the Comperj Complex, in Itaboraí, Rio de Janeiro, had their construction started.

However, the Abreu e Lima works were suspended in 2016 with 95% of works completed. As for Comperj, it was enough to assemble the equipment for it to start operating, until corruption schemes were revealed by Operation Lava Jato.

Fuel taxes have always been the subject of debate involving Petrobras

Taxes represent a substantial portion of fuel prices in Brazil. Of the total gasoline price, about 10% is PIS/COFINS/CIDE. The ICM, which is the state tax, corresponds to about 24% (national average).

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