Experts say BR privatization weakened Brazil’s ability to contain fuel prices

AI Summary

Industry experts argue that the privatization of BR Distribuidora has weakened Brazil's ability to control domestic fuel prices, with gasoline reaching R$9 per liter in São Paulo. Specialists say the loss of state control over the distribution chain is a key factor distorting prices beyond international market volatility.

According to a report by Agência Brasil, industry specialists and oil-sector groups say what they describe as abusive fuel price increases in Brazil are not explained by international volatility alone. The report cites cases of gasoline being sold for R$9 a liter at some stations in São Paulo and links part of the distortion to the loss of state control over the distribution chain after the privatization of BR Distribuidora.