Cade decides to investigate sudden increase in fuel prices in Brazil

The general superintendent of the Administrative Council for Economic Defense (Cade), Alexandre Barreto, decided that he will investigate the sudden increase in fuel prices, which occurred between the end of December and the beginning of January.

In a letter sent to the president of the body, Alexandre Cordeiro, who requested the investigation earlier today, the superintendent states that he will include the investigation in an investigation already in progress that “reveals possible collusive conduct in the fuel resale market related to price increases in all the states of the Federation”. Barreto also sent a response to the district deputy, Chico Vigilante, who had made a similar request.

Posts mainly in the Federal District, Espírito Santo, Pernambuco and Minas Gerais are in the crosshairs.

In Cade’s evaluation, the rise in prices could set up a cartel. There is a suspicion that the stations have readjusted the value in view of the expectation that the federal government would return to the collection of federal taxes on fuel. The problem is that the tax exemption was maintained, but fuel prices rose anyway.

Members of Cade told CNN that they do not rule out the formation of a cartel, in which gas station entrepreneurs would carry out anticompetitive practices together, since the increases took place in an apparently coordinated manner.

Cade’s president says in the investigation request that a cartel is “promoting, obtaining or influencing the adoption of uniform or concerted commercial conduct between competitors”.