Happy Friday! Today, we explain the effects of the massive fuel price hikes promoted by Petrobras. How Brazilian agro is exposed to outside risks. And lawmakers push to keep the secret budget secret.
Mega fuel hike to have economic ripple effects
Under pressure from the relentless rise of international prices, Brazilian state-controlled oil and gas giant Petrobras announced its biggest fuel hike since 2016 this week. Gasoline, diesel, and liquefied petroleum gas (LPG) sold in refineries will see prices rise 18.7, 24.9, and 16 percent, respectively.
- Per the national federation of gas stations, prices at the pump should go up by nearly 7 percent in the case of gasoline, while diesel could get as much as 15 percent more expensive.
- Drivers in multiple urban centers flocked to gas stations on Thursday, creating tumultuous lines in Belo Horizonte, Brasília, and São Paulo.
Why it matters. Brazil is heavily dependent on road transportation —meaning that any change in fuel prices has ripple effects on the entire economy.
- The hike in fuel prices alone should add an extra 0.6 points to the country’s yearly inflation rate, which has already been stubbornly high during the pandemic.
Congress. On the same day Petrobras readjusted its...