BRAZIL – Between ministers Esplanade of ministries and among the associates of the President Jair Bolsonaro in Congress to approve a decree on distress with justification diesel refueling risk not Country.

After the approval of the decree, the government can accept a subsidy in the amount of fuel or even increase the cost Help for Brazila social program of the Bolsonaro government guaranteeing a minimum payment of 400 reais.

On one side of this arm wrestling is the economic district, and on the other are the palace ministers, among them Ciro Nogueira (Casa Civil)e Fabio Faria (Connection). They cite measures taken in other countries to mitigate the impact of rising fuel and energy prices on the population, especially on the poorest segments of the population.

Behind the political movement is the threat of re-election of the president in October elections – with higher prices. According to Stadaominister Mines and energy, Adolfo Sahsidaalso resisted, but he may eventually be forced to succumb to the charges that fall on him in order to present a strong solution to the problem of rising fuel prices, as shown in the example Stadao this Thursday, 2.

Sources said that Ministry of Economics is trying to block the issuance of a disaster order that must be approved by Congress. Close advisers to Minister Guedes pointed out to him the difficulty in describing the disaster at the time. Last week, according to Stadaoabout The Ministry of Economy gave the green light to the grant for truck drivers and assistance to application and taxi driversas long as it is within the spending ceiling. The BRL 8.2 billion budget blockade and the difficulty of cutting additional spending to guarantee a 5% adjustment in civil servants’ salaries showed how difficult it would be to make this move within the spending ceiling.

BUT Petrobras warned that if they changed the price rule as the president wants, there would be supply risk. Now the political core of the government wants to stick to this point in order to approve the decree. With the change of president in the company delayed, the strategy of changing the charter to change the form of price adjustment in the short term has become difficult. Allies point to the risk that the current board of directors will approve the new adjustment.

With this decree, the government will be able to significantly increase the subsidy and increase the Auxílio Brasil without having problems with the electoral law, which restricts this type of action this year. The law does not allow free distribution of goods and benefits or an increase in social programs, except in cases of natural disaster. The decree will allow the government to issue emergency loans (resources outside the spending ceiling) to cover the cost of subsidies.