After ICMS reduction, common diesel drops just five cents in two weeks

The main fuel in the Brazilian logistics chain, diesel has barely felt the effect of the reduction in ICMS (Tax on the Circulation of Goods and Services). While gasoline and ethanol dropped to the lowest values ​​since last year, regular diesel (S-500) registered a drop of just R$ 0.05 in the average price.

The Ministry of Mines and Energy (MME) had estimated that the reduction in ICMS would lead to a drop of R$ 0.13 on average (-1.7%) in the cost of a liter of fuel. But, according to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the average price of diesel in Brazil, between July 3 and 9, was R$ 7.52. Two weeks ago, before the measure was implemented, this amount was R$ 7.57.

This year, it was the first time since the beginning of the ANP’s historical series, in 2004, that the average price of diesel was higher than that of gasoline. The ICMS reduction affected diesel less because the states were already working with lower rates for the product, when compared to other fuels.

in conversation with the CNN Lauro Valdivia, technical advisor to the National Association of Cargo Transport and Logistics (NTC&Logística), explains that, in addition to increases in fuel prices, the interval between adjustments affects the budget of companies in the sector and self-employed truck drivers.

“It is difficult to negotiate a readjustment in the contracts, so the companies could not even pass on the first one, another one is coming”, he says. Also according to Valdivia, the cost of fuel represents about 30% of the sector’s expenses. The input still consumes about 50% of the self-employed revenue.

The specialist points out that the profit margin of companies is 10% to 15% and that, in addition to fuel, expenses with tires and other vehicle parts also increased in price.

According to ANP data, S-500 diesel accumulates a 65% increase in 12 months. In June 2021, the average price of a liter in Brazil was R$4.54. The last price adjustment by Petrobras, in June this year, increased the value of fuel in refineries by 14.26%.

Entities representing drivers, such as the Brazilian Association of Motor Vehicle Drivers (Abrava), question the import parity with the international market, adopted by Petrobras since 2016.

For Nelson Junior, director of the Federation of Autonomous Truck Drivers of General Cargo of Rio de Janeiro (Fecam-RJ), the solution to reduce the price of diesel would be a review of Petrobras’ pricing policy.

“If ICMS is the big villain, why didn’t you lower diesel? We know that in two or three months the increases will continue, and soon they will swallow this reduction in ICMS”, opines the representative of the truck drivers.

THE CNN questioned the Ministry of Mines and Energy and Petrobras about the notes and is awaiting a response. According to data from the state-owned company’s price website, the company is responsible, in the case of S-10 diesel for example, for 66% of the value at gas stations, according to values ​​collected between June 26 and July 2.