When privatizing Brazil, the UK is exploring the nationalization of the gas sector

According to the British News website, IndependentPrime Minister Boris Johnson’s government is considering temporarily nationalizing energy companies to protect consumers from rising gas prices, which have risen by 250% since January this year, with 70% in August alone.

A Reuters news agency “Record prices have put pressure on the UK energy sector, destroying the business model of small energy traders, shocking the chemical and fertilizer markets and leading to carbon dioxide shortages.” As a result, the UK’s largest energy companies have sought government support to offset the cost of getting customers from failed companies.

This is another example of how the privatization of strategic sectors such as energy affects people. Despite warnings from trade unions and experts, the Bolsanaro government continues to oppose grain, privatizing companies such as Electropros and dismantling the Petropress system, selling the company to pieces and insisting on maintaining an import balance pricing policy (PPI). It is causing a lot of damage to the Brazilian people, putting pressure on inflation and increased misery.

As a result, in addition to prohibited fuel prices, a 13-kilogram gas bottle in some cities of the country costs R $ 130 — almost 12% of the minimum wage (R $ 1,100). From January to August, Petrobras adjusted 51% of petrol at its refineries. Diesel and LPG (cooking gas) are already up 40%.

Since October 2016, when the Michael Demer government implemented the Import Equilibrium Price (PPI) on Petropras, the FUP warns of the risks this policy poses to consumers. At the time, the federation drew attention to things to come: “In the 1990s, we saw Brazilian petrol rankings in the 20 most expensive places in the world for the effects of this policy. From 2003 to 2015, the restructuring was 45%, averaging 3.75% per year.The new restructuring policy does not guarantee stability and, therefore, will again penalize the community due to price variation in foreign markets. Read the full text here.

As FUP co-ordinator Deyvid Bacelar explains, “a Brazilian manufacturer does not have to import oil products, but deliberately uses the country’s refineries to produce 70% of their capacity. Import derivatives benefit importers because of the dollar price.” In the interview given Of lateHe again drew attention to the dangers of this policy:

Today, barrel oil in the international market varies between $ 73.75. Keep in mind that in 2013 we had over $ 100 a barrel of oil. So, look, if the price of a barrel of oil rises above this $ 100, it will affect the formation of fuel prices, in the current policy used by the Petroprose management. Another vector, the dollar: The exchange rate in Brazil is out of control. Paulo Quitz’s economic policy is catastrophic, benefiting only those who export it. Logistics import costs should not be part of pricing policy. They should not, because Petrobras, as we have said, is self-sufficient in oil, it has refineries by which it is sold, using up to about 70-74% of its capacity. Importers and refineries in other countries, ”said Basler.

Adriana Marcolino, CUT subcommittee technician for inter-union statistics and socioeconomic studies (Dieese), also draws attention to the implications of this policy in the field of natural gas. He explains that this type is widely used in the fuel industry (43%) and power generation (38%). “It is of interest to shareholders, the financial market, and it is not good for the people. Restructuring is sustainable and appropriate. Since this is the first type of demand, there should be a different pricing policy for both natural gas and bottled gas,” he says.

“Apart from gas, other examples of the re-nationalization of companies show that private companies are not examples of good governance and better service to the people, in the field of basic health care. Led to re-nationalization. CUT.

[FUP, com informações do Independent, da Reuters e da CUT | Foto: Agência Petrobras]