Brazilian finance minister, Guido Mantega, said on Wednesday (30) that the 6.6% increase in gasoline prices, announced the day before by Petrobras, is a “modest rise” and “will not disturb anyone.” According to him, the price change in the stations should be around 4%.
Mantega also said that while it was possible, the government has neutralized the increase of fuel prices for consumers, shooting down a contribution that focuses on fuel. The government, however, already zeroed this tax with this policy and therefore this time the increase will reach consumers.
In some Brazilian service stations, gasoline prices have risen. In a station in Rio de Janeiro, the price of gasoline had raised R$ 0.10 this morning. Since 2005, increases in gasoline prices did not reach the end consumers, according to the government. But the truth is that gas prices in Brazil are already too high and any increase will affect transportation prices, and the inflation as a whole. The government should if they really wanted, decrease the taxes on the product that are collected all the way starting at production, refining, transportation and at the gas stations.