US boycott of Russian oil is expected to further increase fuel prices in Brazil.
Fuel prices have risen again in Brazil and could increase further following the US decision to suspend imports of Russian oil.
247 The decision by the President of the United States, Joe Biden, to suspend imports of Russian oil This is expected to further increase gasoline prices in Brazil and other sectors that use petroleum as a raw material, such as transportation. Russia is one of the main oil exporters, with approximately 7 million barrels per day. After five consecutive weeks of decline, gasoline prices have risen again at Brazilian gas stations. The product was sold last week. at an average price of R$ 6,577 per liter, a 0,26% increase compared to the value recorded in the previous week, according to a price survey by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Russian military actions in Ukraine pushed the price of a barrel of oil above $130 on Tuesday. According to analyst Cláudio Frischtak, director of the consulting firm Inter B, "even if the conflict ended immediately, the impact would take at least two quarters to be mitigated." "A barrel of oil at $150 is a major shock to the global economy," he said. The interview was given to... G1 portal.
"There is still a next step: after the start of the war and the oil sanctions, Russia could still retaliate against NATO countries and completely cut off the supply of oil and gas. It would be an extraordinary process, which did not happen in the crises of the 70s," he added.
The Brazilian government is discussing releasing a subsidy of R$ 27 billion to keep fuel prices down for three months. The proposed subsidy would be based on a price of US$ 95 per barrel of oil. Above that price, the executive branch... It would incur costs of R$ 300 million for each percentage point of shortfall..
The price of gasoline increased by approximately 46% in 2021, ethanol by 58%, and diesel by 45%. These price increases can impact sectors such as transportation. This sector, along with housing and food and beverages, accounted for approximately 79% of the Broad Consumer Price Index (IPCA) in 2021, according to the Brazilian Institute of Geography and Statistics (IBGE).
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