Temer Blackout

Michel Temer's clash with the truck drivers reflects the daily worsening of the widespread crisis in Brazil. It is time to act by building urgent political solutions to prevent the chaos of shortages, paralysis of public services, and economic activity from taking over the country.

The federal government lacks the moral and political authority, as well as the capacity, to lead the country in overcoming the fuel crisis. The illegitimate president no longer has an organized parliamentary base in the National Congress to build collective solutions.

This week, the Chamber of Deputies created a tax cut alternative to enable a 14% reduction in the price of diesel, which meets the demands of truck drivers. Thanks to the approval of our report on Bill 8456/17, which deals with the reintroduction of payroll taxes for economic sectors, we have eliminated the PIS-Cofins tax on diesel fuel. We have therefore presented a practical measure for the country to overcome this impasse. Now, it is up to the Federal Senate to ratify the proposal and Temer to quickly enact it so that the strikes can end.

The Brazilian population is the main victim of the lack of dialogue from the Temer administration. There are food shortages in supermarkets and fuel shortages at gas stations. Public transportation in numerous cities has been affected, industries have halted operations, and flights have been canceled due to fuel shortages at airports.

Instead of accepting the solution presented by Parliament, the Executive questioned where the resources would come from to allow for a reduction in fuel costs. It is a fact that there is an increase in the price of oil, generating increased government revenue due to royalties. This is the fiscal space that can sustain the zero rate of PIS-Cofins (social security contributions). Another source is the revenue from the reinstatement of taxes on various sectors of the economy.

On another front, it is crucial to reconsider Petrobras' new pricing policy, which is disastrous, unsustainable, and generates extremely high costs not only for diesel, but also for gasoline, ethanol, and cooking gas, causing enormous harm to the lives of the Brazilian people.

During the Lula and Dilma governments, the price of gasoline was stable and balanced. According to the Association of Engineers of Petrobras, it didn't reach R$ 3, and even so, the company made a profit. At that time, the refineries were operating at 93% capacity; today they are around 60%. The logic of the current president, Pedro Parente, minister during Fernando Henrique's electricity blackout, is to favor international investors, who profit from the situation.

The country and its sovereign policies are being dismantled rapidly. We must strengthen our fight to prevent the squandering of citizens' assets and income, and our wealth from being handed over to foreign capital and large rentiers. Using federal troops to remove trucks from the roads and arrest their drivers does not solve the crisis. Ultimately, the best thing for Brazil and Brazilians is Temer Out.