In response to fuels hike, Senate passes price stabilization fund

After Brazil’s oil and gas major Petrobras announced a 24.9-percent increase in the price of diesel, senators moved quickly to approve a bill establishing a ‘price stabilization fund’ for fuels.

The fund would gather Petrobras dividends paid to the government and public resources gained from fluctuations in the price of fuels. This money would then be used to keep prices stable at the pump. Economy Minister Paulo Guedes is opposed to the proposal and worked to have it removed from the bill — he was unsuccessful.

The bill was authored and overseen by two Workers’ Party senators, and includes a series of aid measures to mitigate the impact of fuel price spikes. One is to extend an existing benefit to subsidize the cost of domestic kitchen gas cylinders for low-income Brazilians, while another proposal will offer gas vouchers to taxi drivers, couriers, and drivers working for ride-hailing apps.

The bill will now move on to the House of Representatives for analysis and voting.

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