Senate postpones debates on Petrobras pricing policy

The Senate’s Economic Affairs Committee was set to begin deliberations today on how to change Petrobras’ dollar-pegged fuel pricing policy. But the issue will be discussed in two weeks, after the committee decided to hold public hearings on November 23 to “foster debate” on fuel prices before voting on any new legislation.

Senators want to hear from Economy Minister Paulo Guedes, Mines and Energy Minister Bento Albuquerque, and Petrobras CEO Joaquim Silva e Luna to discuss the rapid rise of fuel prices in the country.

Since the beginning of the year, average gasoline and diesel prices have risen 45 and 43 percent, respectively. A bill sponsored by the opposition creates a new tax on crude oil exports as well as a price stabilization fund, and also urges Petrobras to stop pegging its prices to international oil prices.

“Brazil cannot dollarize its economy,” said Senator Rogério Carvalho of the Workers’ Party, who penned the bill. “The government is importing inflation that is not in line with domestic production costs.”

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