PT proposes external commission to oversee fuel prices

PT leaders are pushing measures in Congress to monitor fuel prices amid the Middle East war. They advocate for an external commission and do not rule out a CPI to probe cartels. They also seek to re-nationalize BR Distribuidora, privatized under the previous administration.

In response to debates on fuel prices intensified by the Middle East war, PT leaders are planning actions in Brazil's National Congress. A key initiative is the proposal to establish an external commission focused on monitoring the fuel market. This comes after President Lula mandated that gas stations notify consumers of diesel price cuts and eliminated PIS and Cofins taxes on the fuel.

PT lawmakers are also weighing the option of launching a CPI to investigate alleged cartels at fuel stations nationwide. Meanwhile, government allies are gathering signatures for the Parliamentary Front in Defense of Re-nationalizing BR Distribuidora, which requires at least 171 endorsements. The aim is to highlight the consequences of the company's privatization, now rebranded as Vibra Energia, conducted under the Bolsonaro administration, claiming it undermines energy security and national supply.

Furthermore, the leaders plan to file requests for public hearings in two Chamber of Deputies committees to consult experts and officials on the issue. These steps seek to heighten oversight of the sector, with no specific timelines mentioned for the proposals.

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Brazilian government officials, including President Lula, discuss diesel subsidy tweaks in a conference room amid charts of fuel price surges.
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Government discusses diesel subsidy adjustments after low initial adherence

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Brazil's ANP released on Thursday (2) a list of five companies that joined the first phase of the diesel subsidy program, excluding major distributors Vibra, Ipiranga, and Raízen. President Luiz Inácio Lula da Silva's government is discussing technical adjustments to attract them, as they handle half of private imports. The program aims to cushion the war in Iran's effects on fuel prices.

President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.

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Brazil's Ministry of Justice notified the three largest fuel distributors, Ipiranga, Raízen, and Vibra, giving them 48 hours to detail recent price adjustments. The move addresses government suspicions of abrupt hikes preceding Middle East war effects. Companies stress transparency and point to import costs and supply issues.

Following the neutralization of the Fuel Price Stabilization Mechanism (Mepco), President José Antonio Kast's government has promulgated a law providing relief measures against historic fuel price surges triggered by the war in Iran. Finance Minister Jorge Quiroz emphasized fiscal responsibility, detailing bonuses for transporters and paraffin price cuts.

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Congress leadership indicated it may schedule a session in early March to review Lula's veto on the PL da Dosimetria, which reduces sentences for those convicted of coup attempts, provided pressure for a CPI on Banco Master eases. The measure would benefit former President Jair Bolsonaro by shortening his closed-regime time. Leaders seek an agreement with the opposition to avoid reading CPI requests.

The US-Iran conflict has driven up oil prices in the Philippines, prompting calls to suspend excise taxes and regulate prices. Economists warn of drawbacks, including lost revenue and unequal benefits. Targeted aid for the vulnerable is seen as more effective.

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The Senate's probe into the government's response to the Middle East crisis is targeting oil companies for potential profiteering as fuel prices rise sharply. Sen. Sherwin Gatchalian voiced concerns over firms selling old fuel stocks at elevated prices. Sen. Bam Aquino called for a price freeze on essential goods.

 

 

 

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