Happy Monday! This week, factories fear closure amid plans to raise gas prices even higher. PSDB primaries end in farce, epitomizing the party’s fall from grace.
Industries face uphill battle to tame gas prices
Brazilian industry has been limping in recent years, and the current water and energy crisis has only made things more difficult. The price of gas has skyrocketed — potentially seeing increases of 300 percent in 2022 — short-term electricity prices are volatile, and industries have seen losses caused by voluntary power consumption reduction programs.
- Petrobras announced last week that it wants to raise gas prices by up to four times, depending on contract maturities. Gas distributors association Abegás filed a complaint to antitrust watchdog Cade to prevent Petrobras from carrying out the move.
Why it matters. Representatives of major energy consumers say the price increase will deliver a death blow to multiple factories — which will affect employment and overall industrial activity. The full impact of the measure is still being assessed.
Yes, but … Considering the proximity to Cade’s end-of-the-year recess, the case is unlikely to be resolved in 2021, upending industries’ near future. To speed up a resolution, consumers could go after Petrobras in court.
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