MP who reduced the price of diesel oil will be discussed at a hearing this Tuesday

The joint commission that analyzes MP 838/18 is holding an interactive public hearing this Tuesday (07/08), starting at 14 pm. Under debate is the provisional measure that, through subsidies, reduced the price of diesel oil until the end of 2018. This was one of the MPs issued by the federal government in response to the truck drivers' strike, which caused a supply crisis of national proportions. .

Representatives of the Association of Petrobras Engineers (Aepet), the National Union of Truck Drivers (Unicam), the National Federation of Fuel and Lubricant Commerce (Fecombustíveis) and the Federation of Autonomous Cargo Truck Drivers in General of the State of São Paulo. Retired legislative consultant from the Chamber of Deputies Paulo Cesar Ribeiro Lima and a representative of the National Association of Fuel, Lubricant, Logistics and Convenience Distributors (Plural) should also participate in the debate.

MP 838 determined an economic subsidy of R$0,07 per liter of diesel oil until June 7th, and R$0,30 per liter between June 8th and December 31st, 2018. The measure aims to reduce the price of fuel at the refinery, with an effect on the final value of a liter of diesel at stations. According to the government, spending on the subsidy will be limited to R$9,5 billion this year. MP 838 has already received 36 amendments from senators and deputies in the joint committee.

New MP
Last week, the Presidency of the Republic published a new MP on the same topic. MP 847/18 deals with the same measures as MP 838, but restricts the subsidy to road diesel, which is used by trucks, buses, pickup trucks and agricultural machinery. The text of the first provisional measure did not distinguish between the type of diesel, which ended up making the subsidy also valid for other types of fuel, such as marine diesel and that used in the generation of electrical energy and in railway transport.

Another change was the inclusion of the “import on behalf and order” modality, which is not in the text of MP 838. According to the government, the change is necessary as distributors are prevented from importing diesel directly. Thus, they can buy diesel from importers or through a company that imports on behalf of them. In other words, one type of purchase received a subsidy and the other did not, which could create “distortions in market competition”, according to the government. This was one of the motivations for the new MP.

MP 847, however, did not change the subsidy deadline (December 31, 2018) nor the total spending limit of R$9,5 billion until that date. The subsidy also depends on MP 839/18, which opened an extraordinary credit of R$9,5 billion in favor of the Ministry of Mines and Energy to pay the bill for reducing the price of diesel. MP 839 awaits a vote in the Mixed Budget Committee.

Popular participation
The debate will be held in plenary 6 of Ala Nilo Coelho, in the Senate. Interested parties can participate in the interactive public hearing on MP 838 through the e-Cidadania portal or by Fale com o Senado (0800 612211).

The president of the commission is senator Dário Berger (MDB-SC) and the rapporteur is deputy Arnaldo Jardim (PPS-SP).

MPV 838/2018 here