• Categories
  • Archives

Brazil Hikes Gas 10%, a First in Three Years

Brazilian gas station Brazil's Finance Minister, Guido Mantega, has just announced a 10% hike in the price of gasoline and 15% for diesel fuel, the first such increase since 2005. The increases refer to products from Petrobras, the country's government-controlled oil multinational, which sets the pace for the rest of the industry.

However, according to the government the new prices should not have a major effect on consumers' pockets since they will be compensated by a tax reduction ranging between 0.28 Brazilian real (17 US cents) to 0.18 teal (11 cents) per liter of gasoline. For diesel fuel the same tax will drop from 0.07 Real (4 US cents) to 0.03 Real (2 US cents) per liter.

Nevertheless at the end of the day diesel fuel price will rise 8.8%, which will have an impact of 0.015 percentage points on the inflation rate, according to Mantega.

A liter of gasoline currently costs in Brazil at the pump approximately 2.60 Real (US$ 1.56), and diesel, 1.90 Real (US$ 1.14).

The price hike announcement was anticipated on Wednesday during a press conference on the investment grade granted to Brazil by the risk rating firm Standard & Poor's. The Brazilian government had postponed price rises several times, fearing their impact on the country's inflation.

When Petrobras implemented the previous rise on its gasoline prices, the international oil price was US$ 65 a barrel. The oil barrel is now about US$ 112.

Gas prices around the world according to air-inc.com:

Nation   City  Price in USD Regular/Gallon
Netherlands  Amsterdam  $6.48
Norway   Oslo   $6.27
Italy   Milan   $5.96
Denmark  Copenhagen  $5.93
Belgium  Brussels  $5.91
Sweden   Stockholm  $5.80
United Kingdom  London   $5.79
Germany  Frankfurt  $5.57
France   Paris   $5.54
Portugal  Lisbon   $5.35
Hungary  Budapest  $4.94
Luxembourg    $4.82
Croatia  Zagreb   $4.81
Ireland  Dublin   $4.78
Switzerland  Geneva   $4.74
Spain   Madrid   $4.55
Japan   Tokyo   $4.24
Czech Republic  Prague   $4.19
Romania  Bucharest  $4.09
Andorra    $4.08
Estonia  Tallinn  $3.62
Bulgaria  Sofia   $3.52
United States   $3.45
Brazil   Brasí­lia  $3.12
Cuba   Havana   $3.03
Taiwan   Taipei   $2.84
Lebanon  Beirut   $2.63
South Africa  Johannesburg  $2.62
Nicaragua  Managua  $2.61
Panama   Panama City  $2.19
Russia   Moscow   $2.10
Puerto Rico  San Juan  $1.74
Saudi Arabia  Riyadh   $0.91
Kuwait   Kuwait City  $0.78
Egypt   Cairo   $0.65
Nigeria  Lagos   $0.38
Venezuela  Caracas  $0.12

Mercopress

Tags:

  • Show Comments (14)

  • DU 48

    Sarney and the death of Funaro
    As I recall Funaro pleaded with Sarney to abolish the price freeze -no goods in the supermarkets, including beef. Then after Sarney was (re) elected? the freeze was cancelled -of course – and inflation took off again. D.Funaro, I believe, died of Lymphatic Cancer not long after:Sarney is STILL a powerful politician,God help us all.

  • João da Silva

    Jon
    [quote]Not a bad idea of cane in the Praires but the Yanks will block the imports of it from some obscure clause in the NAFTA free trade agreement![/quote]

    We can always request our friendly Yank bloggers to write to their respective Senators to unblock the imports! I think our friend Forrest would take the lead!!!

  • jon

    Joao,

    No problems eh!

    Not a bad idea of cane in the Praires but the Yanks will block the imports of it from some obscure clause in the NAFTA free trade agreement!

  • João da Silva

    DU 48
    [quote]Fiscal do Sarney-er Lula[/quote]

    You also seem to have a very good memory! Remember the late Dilson Funaro trying to enlist the help of FAB to track down the cattle supposedly hidden away by the ranchers?

    That was one of the best real life comedies played out on the TV!

    [quote]the gas station bosses say the opposite: removing the cid tax is not going to be enough to hold the prices. [/quote]

    It is imperative that the prices are held at the current level till the Municipal elections.After that, regardless of the outcome, the prices will go up. Lets not be surprised if we see the “Fiscais” intimidating the gas station owners.

  • João da Silva

    Jon
    [quote]just the “guest”………….[/quote]

    Ah, Jon, the Canuck? So sorry for being rude to you ;-). My apologies.

    [quote]Sadly, the market will probably follow even if Brazil ramps up the Tupi field or Canada digs the hell out of Alberta![/quote]

    No need to dig the hell out of Alberta. Lets plant sugar cane in the Canadian prairies to produce Ethanol, thus turning that region into another “wastebasket” of the world. I am sure this proposal will interest some distinguished Swiss investors. 😉

  • DU 48

    Fiscal do Sarney-er Lula
    Guido Mantega says the impact on gas pump prices will be zero – the gas station bosses say the opposite: removing the cid tax is not going to be enough to hold the prices.
    Unfortunately, politicians don’t have to go and buy gas themselves.

  • jon

    just the “guest”………….

  • João da Silva

    [quote]Sadly, the market will probably follow even if Brazil ramps up the Tupi field or Canada digs the hell out of Alberta![/quote]

    Did anyone ask your opinion 8)

  • jon

    ..the economists and their thinktanks make their predictions which in turn stirs up the hornets nest of speculators which in the next turn drives up the price of oil. Come on, how can the world function at any level atf $200/barrel as predicted in two years by Goldman Sachs?? Sadly, the market will probably follow even if Brazil ramps up the Tupi field or Canada digs the hell out of Alberta!

  • João da Silva

    In our city, the gas price is R$2.49/liter and ethanol is R$1.69/liter. The cheapest prices I found in the entire city.

    As for the comment of Ch.c:

    [quote]at the pump station in the Plano Alto…in Brasilia. [/quote]

    It is NOT Plano Alto,but PLANALTO. Good ole Ch.c should start bettering his Portuguese.Real fast 🙂

  • ch.c.

    Furthermore……..
    I think that this list price was first published here by a guest ….a few months ago !
    His name ? JONY LOZEIDA !!!!!!!!!

    😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😉

    😉 😉 😀

  • ch.c.

    Well said Joao ! You finally evolved ! smile
    As to your question ” I would like to know in which city this fuel is (or was ) being sold for R$1.39/Liter”….. the answer is obvious : at the pump station in the Plano Alto…in Brasilia.

    😉 😉

  • João da Silva

    [quote]BRL 2.60 per liter DOES NOT EQUAL to US$ 3.12..PER GALLON !
    US$ 5.80 or so is more accurate. [/quote]

    Actually, the price of the Ethanol shown in the picture in Reais is also wrong. I would like to know in which city this fuel is (or was ) being sold for R$1.39/Liter.

    Again the government pulled its favorite stunt by a) sending a wrong info to the public that there was going to be a 5% increase b) then saying that there would not be any increase at all till the end of the year under the orders of the President c) a day after that Mantega announces an increase of 10%, just as the Brazilians were beginning their long week end.

    This ethanol program has not benefited the Brazilians in anyway, because the cost per gallon is higher than the one the Americans pay for the gasoline.Brazil can find enormous amount of oil along its 5000 miles of coast or turn the entire cultivable area to plant sugar cane to produce ethanol, still we will be paying more for our fuel. Thank God, we don’t have heating furnaces to heat up our homes. If we did, we will be paying through our arses.

  • ch.c.

    DEAD WRONG…from A to Z…..including B…for Brazil !
    The around the world prices mentionned are……OLD…..very OLD !

    In Geneva…prices are at around US$ 6.70 – 7.00…..not 4.74 !
    In France…the price is around 20 % HIGHER THAN…..in Switzerland. This is why French people around the border fill their tanks HERE NOT THERE !

    Even prices in Brazil are…WRONG !
    BRL 2.60 per liter DOES NOT EQUAL to US$ 3.12..PER GALLON !
    US$ 5.80 or so is more accurate.
    Dont need to go to a Brazilian University…for a simple equation !
    What a bunch of junkies….these Brazilians !

    The first ones being….those politicians at the helm…such as Mantega and then your medias not even checking the accuracy of their writings !

    They cant even figure out the accurate prices….IN BRAZIL…their own country !!!!!!!!!!

    LAUGH….LAUGH….LAUGH….LAUGH….LAUGH….LAUGH….LAUGH !

    VIVA BRAZIL…..THE ONLY IDIOTS IN THE WORLD WHOSE LEADERS AND EDUCATED PEOPLE CANNOT APPLY BASIC MATHS…..TO FIND OUT THE GAS PRICES…..IN US$ per gallon !!!!!!

    SHAME ON YOU !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Industrial Sales in Brazil Have Biggest Boost Since August 2006

Industrial sales in Brazil had an increase at the end of 2006. Real industrial ...

Brazilian Music: Minimalist Luciana

Luciana Souza has miraculously managed to elude the trap that besets so many of ...

Ahmadinejad’s Visit to Brazil: Congress Divided, New Protests Planned

Brazilian president's special adviser for International Affairs, Marco Aurélio Garcia, told reporters this Tuesday, ...

Chicken and Beef Help Brazilian Farming Exports Jump 8.7%

Exports from Brazilian agribusiness yielded US$ 4.072 billion, an increase in 8.7% in comparison ...

How Low Will Brazil’s Lula Go to Please Washington?

Since the February 29 ouster of democratically-elected Haitian President Jean-Bertrand Aristide, the UN has ...

Brazil and India: Beyond Oil and Mining Agreements

The governments of Brazil and of India signed Tuesday, September 11, 9 agreements and ...

Brazil Vows to Fight World’s Currency War Buying Excess Dollar in the Market

Guido Mantega, Brazil’s Finance Minister claims that an “international currency war” has broken out ...

Despite New Civil Union Law Discrimination Against Gays Will Go on in Brazil

Brazil has finally taken a huge step towards the non-discrimination of gay-union. The country’s ...

It’s Carnaval: For 5 Days Brazilians Are Encouraged to Drink, Dance and Have Sex

Since Friday the world’s largest street party is going on in Brazil. In Rio ...

São Paulo Governor Still Clear Favorite to Be Brazil’s Next President

The governor of São Paulo, José Serra, from the opposition PSDB (Party of the ...