Page 11 - LatAmOil Week 49 2021

LatAmOil BRAZIL LatAmOil

President Bolsonaro has said Petrobras will reduce fuel prices this month (Image: Petrobras)

Brazilian MPs set to vote on fuel

price stabilisation fund in Q1-2022

MEMBERS of the Brazilian Senate’s Economic can be submitted to both houses of the National
Affairs Committee voted on December 7 to Congress. According to press reports, this is
move forward with a bill that provides for the likely to happen in the first quarter of next year.
creation of a fuel price stabilisation fund, clear- If the measure passes, Brazilian oil exports
ing the way for further debate on the measure would be subject to the new tax at a sliding rate
early next year. of 2.5% or higher whenever crude prices were
According to press reports, the draft leg- between $45 and $100 per barrel. The measure is
islation calls for taxing crude oil exports and backed by Brazil’s left-wing Workers’ Party (PT).
depositing the proceeds into a special fund that The committee vote occurred just days after
would subsidise domestic gasoline, diesel and the Poder360 web site quoted Brazilian Presi-
LPG prices. The fund would help insulate Bra- dent Jair Bolsonaro as saying that he expected
zilian consumers from the economic impact of the national oil company (NOC) Petrobras to
fluctuations on world crude oil markets – and reduce petroleum product prices in the near
from the political turmoil that might follow future. In an interview published on Decem-
higher motor fuel and cooking gas costs. In ber 5, Bolsonaro said that the NOC was set to
the past, diesel price spikes have led truckers to take a number of steps to reduce fuel prices over
stage nationwide strikes that proved extremely the next few weeks but did not provide exact
disruptive. details. “Petrobras begins this week to announce
The bill has yet to be submitted to Brazil- a reduction in the price of fuel,” he commented.
ian legislators for debate. Now that the Senate As of press time, Petrobras had not
committee has given it a green light, however, it responded to his remarks. ™

CHILE
Total Eren studying H2 Magallanes project

TOTAL Eren, a renewable energy producer scheme, which envisions the installation of 10
established in 2017 by France’s Total (now MW of wind-powered generating capacity in
TotalEnergies) and Luxemburg’s Eren, said the southern Magallanes region and the con-
last week that it had begun work on studies for struction of associated facilities in the borough
a large-scale green hydrogen project based on of San Gregorio. The installed capacity will be
wind power in Chile. used to support an 8-MW electrolysis plant that
In a statement, Total Eren reported that it will turn out green hydrogen and an ammonia
had launched its studies of the H2 Magallanes plant that will use the hydrogen as feedstock.

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