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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Chilean gas station showing historic fuel price hikes after government decree on Mepco, with queues of drivers and La Moneda palace in background.
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Government neutralizes Mepco and drives fuel prices to historic highs

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José Antonio Kast's government issued decrees tweaking the Mepco, allowing historic gasoline and diesel price hikes starting March 26. The move addresses surging oil prices from the Iran war and fiscal tightness, with relief for paraffin and transporters. Congress approved the bill after negotiations exempting SMEs from higher taxes.

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.

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President Luiz Inácio Lula da Silva announced on March 12, 2026, the exemption of federal taxes on diesel to prevent price hikes amid Middle East tensions involving Iran, the United States, and Israel. The measure, costing around 30 billion reais, will be funded by a new tax on oil exports. Experts view the initiative as reasonable in the short term, though it has electoral implications.

Fuel prices in Germany have risen sharply due to the Iran war. Federal Economics Minister Katherina Reiche has announced a cartel law investigation into the price surges. Finance Minister Lars Klingbeil warns oil companies of consequences if they exploit the situation.

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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.

President Lee Jae-myung on Friday called for close monitoring of local gas stations to ensure compliance with a fuel price cap, implemented to curb fluctuating costs from international uncertainty and ease consumer burdens. The government enacted the ceiling at midnight. This marks the first such measure since 1997.

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Centrist leaders in Brazil's lower house want to avoid voting on a bill regulating extra perks and supersalaries for public servants unless President Lula's government engages directly. The Supreme Federal Court suspended these benefits and ordered Congress to legislate within 60 days, but the deadline is deemed too short in an election year. The STF plenary is judging the decisions this week.

 

 

 

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