The Ministry of Economy’s bet to increase pressure on Petrobras’ management and, consequently, find a way to reduce gasoline and diesel prices before the elections, the Administrative Council for Economic Defense (Cade) expects to conclude the investigation in the second half of the year. about alleged abuse of the state-owned company in the fuel market. The information is from board members who spoke with the CNN in a reserved character.
It is based on this opinion from Cade that members of the Jair Bolsonaro government (PL) see a gap for a change in Petrobras’ pricing policy. The assessment within the Ministry of Economy, for example, is that, even if the agency does not have the prerogative to act incisively, its manifestation would be enough for the state-owned company to change the way of calculating the price of fuels.
According to members of the antitrust body, there are still a number of steps to be taken before a conclusion is reached. The assessment is that, in about 60 days, the case is finally advanced.
The process at Cade was opened in January and still has a long way to go. But members of Cade who are aware of the investigation say that new bids should be released soon, indicating a deepening of the work, such as decisions to officiate the market and disclosure of opinions. These are actions that will indicate that Cade sees elements to move forward and that it is on top of the case, explains a member of the board.
Cade does not have the power to set prices or delimit Petrobras’ profits. But, as it has to defend the competition and the consumer, it is looking to see if the company has abused its dominant position.
For this reason, CADE’s leadership, according to the members interviewed by the CNN understands that, if the investigation points to infractions on the part of Petrobras, the state company can use the case to adjust its pricing policy up front.
The company is virtually a monopolist in the refining sector, with more than 70% of the market. The idea is to see if the increases were abusive, unduly subtracting consumer income. If the conclusion is that the company abused, the oil company will receive a fine and will still have to deal with public exposure of the problem.
The same members of Cade see the chances that the autarchy will issue an injunction on the case as more remote. But they understand that new actions will make it clear that the board is on the subject and concerned with ensuring the smooth functioning of the market.
Cade’s investigation has been seen as an ace in the government’s sleeve for a few months. In March, the CNN showed that the leadership of the Ministry of Economy saw in the actions of the autarchy a way out for the then president of Petrobras, General Joaquim Silva e Luna, to review the management of prices.
Source: CNN Brasil
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